US President Donald Trump on Thursday threatened to cancel all government contracts with Elon Musk’s companies, after which Musk himself called for Trump’s impeachment.
Their relationship continues to fall apart as Musk and Trump struggle to agree on doing business together. The US President is looking to cut expenditure by filtering out commercial contracts that are costing Washington billions of dollars. Musk’s Tesla and SpaceX could lose billions in contracts if Trump goes ahead with this austerity drive.
“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 Truth Social.
Within hours, Tesla shares dropped 14.3 percent, wiping out nearly $150 billion in market value. This was the sharpest single-day loss in the company’s history.
Shortly after markets closed, Musk replied “Yes” to a post on X that called for Trump’s impeachment. This shows how intense the split is between the two.
The fallout began earlier this week when Musk criticized Trump’s tax and spending bill, calling it a “disgusting abomination” and urging Congress to “KILL the BILL.” Trump responded yesterday that he was “very disappointed” with Musk.
Musk, who served until last week as head of the Department of Government Efficiency (DOGE), had been a close adviser and the government’s top donor in 2024. Trump suggested Musk’s opposition was personal and tied to cuts in tax credits for Tesla.
Musk accused Trump of ingratitude and warned that his tariffs could push the US into recession. He also briefly threatened to decommission SpaceX’s Dragon spacecraft, which is NASA’s only operational crew transport to the International Space Station.
Musk also floated forming a new political party and indicated he would scale back future campaign donations.
Their public rift comes just six days after a joint Oval Office appearance. Now, the feud threatens to divide Republican ranks ahead of the 2026 midterms.
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Is this considered news now ??? Kindly grow up . Your journalists are losing capability.
Trump cannot be impeached just bcz musk thought so. You need house of representatives to first initiate an impeachment agenda and get over 50% to agree to it.
Then senate needs a 2/3rd majority vote to allow it. Even then it can be challenged in Supreme Court.