US President Donald Trump threatened to cut off government contracts with billionaire Elon Musk’s companies, and Musk suggested Trump should be impeached, as the bromance between the president and his former adviser disintegrated into a barroom brawl.
Trump started the feud in remarks from the Oval Office. Musk quickly responded with posts on his social media site X, and within hours both were trading barbs on their respective social media platforms.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his Truth Social.
Their sparring hammered shares of Musk’s electric vehicle maker Tesla, which lost about $US150 billion in value, closing down 14.3% for the day.
Minutes after the closing bell, Musk replied, “Yes,” to a post on X saying Trump should be impeached.
Trump’s Republicans hold majorities in both chambers of Congress and are highly unlikely to impeach him.
The trouble between the two built up over the week. On Tuesday, Musk began denouncing Trump’s sweeping tax-cut and spending bill. The president held his tongue while Musk, his former adviser, campaigned to torpedo the bill, saying it would add too much to the nation’s $US36.2 trillion in debt.
Trump broke his silence on Thursday, telling reporters in the Oval Office 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 with increasingly acerbic posts on X.
“Without me, Trump would have lost the election,” Musk posted. “Such ingratitude.”
Besides Tesla, Musk’s businesses include rocket company and government contractor SpaceX and its satellite unit Starlink. The billionaire spent nearly $US300 million in the 2024 election in support of Trump and other Republican candidates.
Musk, whose space business plays a critical role in the US government’s space programme, said that as a result of Trump’s threats he planned to begin decommissioning SpaceX’s Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station.
SpaceX’s cheap, reusable Falcon 9 rockets have made it the world’s most active launch provider. Its vast Starlink network has disrupted the global satellite communications market.