Trump threatens to cancel Musk's government contracts as feud boils over
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President Trump and Elon Musk during a news conference in the Oval Office on May 30. Photo: Francis Chung/Politico/Bloomberg via Getty Images
President Trump suggested he could cancel billions of dollars of government contracts with Elon Musk's companies, accusing his former adviser and biggest political donor of going "crazy."
Why it matters: The close relationship between two of the most powerful men in the world is imploding in real time, triggered by Musk's scathing criticism of Trump's signature legislation.
- Musk escalated the conflict dramatically with a tweet Thursday claiming that "Trump would have lost the election" without him.
- "Such ingratitude," Musk added, before unleashing a barrage of additional tweets insulting Republicans and floating a new political party.
The latest: "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!" Trump wrote on Truth Social Thursday afternoon.
- "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!" Trump added.
- "Such an obvious lie. So sad," Musk shot back.
Catch up quick: "Elon and I had a great relationship," Trump told reporters during an Oval Office appearance alongside German Chancellor Friedrich Merz Thursday. "I don't know if we will anymore."
- Asked about Musk's ongoing criticism, Trump said he was "very surprised."
- The president noted that Musk hadn't said anything "about me that's bad" but added he'd rather the billionaire "criticize me than the bill."
- Trump argued Musk was upset because "we took the EV mandate," in reference to the electric vehicle tax credit the legislation would cut.
What he's saying: "I'm very disappointed in Elon," Trump said. "I've helped Elon a lot."
- He said Musk knew the "inner workings of this bill better than almost anybody sitting here."
- Trump added he thinks Musk "misses the place."
- "People leave my administration, and they love us, and then at some point they miss it so badly, and some of them embrace it, and some of them actually become hostile," Trump said.
Friction point: While Trump was talking, Musk was posting on X.
- "Whatever," he replied in a post that included a clip of Trump's Oval Office comments. "Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill."
- "Either you get a big and ugly bill or a slim and beautiful bill," Musk added.
- In a separate post in response to Trump's claim that Musk was very familiar with the bill's details, the SpaceX CEO wrote, "False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!"
Context: The former DOGE head departed the Trump administration in May and has since bashed the "one big, beautiful bill" as a "disgusting abomination."
- Since then, Musk has urged his followers on X to call their representatives to "KILL the BILL."
- Some House Republicans have privately revealed their frustration with Musk, including criticism of his competence in the White House.
Zoom in: As of Tuesday, Musk and Trump remained friends and allies, Axios' Marc Caputo reported, but the president was bothered by his former adviser's social media rampage.
Go deeper:
- Musk demands do-over on Trump budget bill
- Scoop: Four reasons Musk attacked Trump's "big beautiful bill"
- Republicans scramble to avoid a war with Elon Musk
Editor's note: This story has been updated with comments from Elon Musk.
