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Trump threatens to cut Musk’s federal contracts; Tesla dives $150 bn as tech titan calls for impeachment

06.06.2025 10:00
The once-celebrated bromance between President Donald Trump and Elon Musk imploded Thursday: Trump threatened to yank federal contracts for Musk’s firms, and the billionaire backed impeachment, wiping about $150 billion off Tesla’s value.
US President Donald Trump (R) and Elon Musk shake hands during a press conference in the Oval Office at the White House in Washington, DC, USA, 30 May 2025.
US President Donald Trump (R) and Elon Musk shake hands during a press conference in the Oval Office at the White House in Washington, DC, USA, 30 May 2025. Photo: EPA/FRANCIS CHUNG

“The easiest way to save billions in our budget is to terminate Elon’s governmental subsidies and contracts,” Trump wrote on his Truth Social platform after blasting Musk’s efforts to derail the White House’s flagship tax-cut and spending bill.

Tesla shares closed down 14%, their biggest one-day drop on record. Minutes after the bell, Musk responded “Yes” to a post on X (formerly Twitter) urging the Republican-controlled Congress to impeach Trump.

A relationship turned sour

The clash marks a dramatic reversal for two men who once forged an unusual alliance in Washington: Musk served as head of Trump’s Department of Government Efficiency while his companies—electric-car maker Tesla, rocket firm SpaceX and satellite operator Starlink—won multibillion-dollar government deals.

Speaking in the Oval Office, Trump said he was “very disappointed” in Musk, who spent nearly $300 million backing GOP candidates last year and is now campaigning against the president’s “big, beautiful bill,” which independent analysts say could add up to $5 trillion to the national debt.

“Without me, Trump would have lost the election,” Musk fired back on X, warning that the president’s tariffs could tip the economy into recession.

SpaceX threat, partial climb-down

Musk briefly threatened to start decommissioning SpaceX’s Dragon capsules—the only U.S. spacecraft able to ferry astronauts to the International Space Station—but walked that back late Thursday. Even so, the episode rattled lawmakers and NASA officials who rely on SpaceX flights.

Republican strategists warned that a prolonged feud could sap fundraising and deepen intra-party splits ahead of next year’s midterms, especially if Musk withholds campaign cash.

“Elon really was a significant portion of the ground game last cycle,” one GOP operative said.

Poland sends an international jab

Polish Foreign Minister Radosław Sikorski, who sparred with Musk in March over Starlink fees for Ukraine, piled on via X: “See, big man, politics is harder than you thought,” referencing a prior exchange in which Musk called him a “small man.”

(jh)

Source: Polskie Radio 24, Reuters, PAP