What was once a high-profile alliance between President Donald Trump and tech billionaire Elon Musk has erupted into an all-out feud. On Thursday, Trump threatened to cut off federal contracts with Musk’s companies, while Musk responded by backing calls for the president’s impeachment.
The dispute exploded across social media after Trump criticized Musk in the Oval Office. Shortly after, Trump posted on Truth Social suggesting billions could be saved by ending government ties with Musk’s firms. In response, Tesla stock plummeted 14.3%, wiping out roughly $150 billion in market value—its steepest single-day loss.
Musk fired back on X, endorsing a post calling for Trump’s impeachment and accusing the president of ingratitude after he reportedly donated nearly $300 million to GOP campaigns in 2024. “Without me, Trump would have lost the election,” Musk posted.
Tensions have been simmering since Musk publicly opposed Trump’s major tax and spending bill, which analysts say could balloon the national debt by up to $5 trillion. Musk slammed it as a “disgusting abomination,” while Trump accused Musk of acting out over the bill’s proposed cut to EV tax credits.
The clash has had ripple effects beyond social media. Musk briefly threatened to decommission SpaceX’s Dragon spacecraft—a key NASA asset—before walking back the decision hours later.
Musk also hinted at forming a new political party and scaling back political donations, signaling a possible realignment within Republican ranks as the 2026 midterms approach.
Their public split marks the first major fallout of Trump’s second term and raises questions about future cooperation between Washington and Musk’s powerful tech empire.