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Donald Trump threatened on Thursday to cut off government contracts to Elon Musk‘s companies and the world’s richest man suggested the US president should be impeached, marking a stark end to an unlikely alliance and leaving onlookers wondering what was next.
The hostilities between the former allies intensified when the president criticised Tesla CEO Musk in the Oval Office and the pair then lobbed verbal barbs at each other on their social media platforms: Trump‘s Truth Social and Musk‘s X.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted.
Tesla shares closed down over 14 per cent on Thursday, losing about $150bn in market value in the largest single-day decline in value in its history.
Minutes after the closing bell, Musk replied, “Yes,” to a post on X saying Trump should be impeached, an unthinkable move in Congress where Trump‘s Republicans hold majorities in both chambers.
The trouble between the two started brewing days ago, when Musk denounced Trump‘s sweeping tax-cut and spending bill.
The president initially held his tongue while Musk campaigned to torpedo the bill, saying it would add too much to the nation’s $36.2tn in debt.
Trump broke his silence on Thursday, telling reporters he was “very disappointed” in Musk.
“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said.
As Trump spoke, Musk responded in real time on X.
“Without me, Trump would have lost the election,” wrote Musk, who spent nearly $300m backing Trump and other Republicans in last year’s election.
In another post, Musk asserted that Trump‘s signature tariffs would push the US into a recession later this year.
Musk‘s businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink.
Musk, whose space business plays a critical role in the U.S. government’s space programme, said that as a result of Trump‘s threats he would begin decommissioning SpaceX’s Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station. Late on Thursday, Musk backed off the threat.
And in a sign of a possible detente to come, Musk subsequently wrote: “You’re not wrong,” in response to billionaire investor Bill Ackman saying Trump and Musk should make peace.
