President Donald Trump has publicly threatened to terminate federal subsidies and contracts awarded to Elon Musk’s companies, including Tesla and SpaceX. This development follows Musk’s vocal criticism of Trump’s proposed tax and spending bill, which Musk labeled a “disgusting abomination” due to its potential to significantly increase the national debt.
In response to the criticism, Trump suggested that Musk’s success is heavily reliant on government support, stating that Musk may have received more subsidies than any individual in history. He implied that without such support, Musk’s operations might not be sustainable.
Musk countered by advocating for the elimination of all subsidies, emphasizing his stance against government handouts. He also threatened to decommission SpaceX’s Dragon spacecraft, a critical component of NASA’s operations, although he later retracted this statement.
The feud has had tangible financial repercussions. Tesla’s stock experienced a significant drop, erasing billions in market value, while Musk’s personal net worth also took a substantial hit.
This public dispute marks a significant deterioration in the relationship between Trump and Musk, who were once considered allies. The ongoing conflict underscores broader tensions between government policies and private sector interests.
