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Trump Threatens to Cut Off Elon Musk’s Government Contracts, Musk Calls for Impeachment

By The South Asia Times

WASHINGTON — A public feud erupted Thursday between former U.S. President Donald Trump and billionaire entrepreneur Elon Musk, ending what was once considered an unlikely alliance between two of the most influential figures in American politics and business.

The dispute escalated rapidly after Trump threatened to revoke federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX, during a meeting in the Oval Office. The former president later took to his social media platform, Truth Social, to make his warning public.

“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.

In response, Musk fired back on his own platform, X (formerly Twitter), calling Trump’s remarks an abuse of power and going as far as to suggest the president should be impeached.

The rift comes as a surprise to many observers, given the two men had often expressed mutual respect in the past. Musk had served as an informal advisor on economic and space-related matters during Trump’s presidency, and both frequently railed against regulatory overreach and "woke" corporate culture.

Thursday’s fallout had immediate financial repercussions. Tesla’s stock plummeted more than 14 percent by the close of trading, wiping out approximately $150 billion in market value—its largest single-day decline in company history.

Analysts say the feud could have far-reaching implications not just for Tesla and SpaceX, but also for the broader tech sector, which has long benefited from federal contracts and subsidies.

“There’s a clear political message here, but the economic consequences could be massive if this escalates into actual policy,” said Sandra Liu, a political economist at Georgetown University.

The White House has yet to comment on the clash. However, insiders say senior aides are concerned about the potential for the dispute to spill over into broader economic and political arenas.