US President Donald Trump and tech billionaire Elon Musk clashed openly on Thursday, severing their once-close relationship.
Trump threatened to revoke federal contracts with Musk’s firms, while Musk demanded Trump’s impeachment via X (formerly Twitter), raising tensions in a public battle.
The feud erupted after Trump chastised Musk in the Oval Office for opposing a massive tax and spending bill.
Hours later, Trump claimed on Truth Social that canceling Musk’s government contracts would save the federal government billions of dollars.
Wall Street reacted swiftly, Tesla shares plunged 14.3%, erasing roughly $150 billion in market value, the steepest single-day drop in Tesla’s history.
In response, Musk agreed with a post calling for Trump’s impeachment.
Though Republicans currently control Congress, making impeachment unlikely, the public fallout marked a major rupture in what had been a powerful alliance.
The feud had been simmering for days.
Musk warned that Trump’s tariffs could trigger a recession and even announced plans to decommission SpaceX’s Dragon spacecraft, the only U.S. craft capable of sending astronauts to the International Space Station, as retaliation for Trump’s threats.
However, he later reversed that decision following calls for de-escalation.
In a further olive branch, Musk acknowledged hedge fund manager Bill Ackman’s call for reconciliation.
The Trump-Musk fallout underscores their shared combativeness and willingness to leverage social media as a political weapon.
Musk, who briefly served as head of the Department of Government Efficiency, had clashed with Cabinet officials and failed to make significant budget cuts before stepping down last week.
The public fight marks Trump’s first major rift with a close adviser since returning to the presidency. Their deteriorating relationship could complicate Republican efforts in the upcoming midterms. Musk, with his vast wealth and online reach, had helped bridge Trump’s influence into tech and donor circles.
After Trump’s public rebuke, Musk floated the idea of a new political party representing the political middle, polling his 220 million followers on X.
