A personal clash between Trump and Musk has exploded into threats against billions in federal contracts. The former president vows to terminate SpaceX and Tesla‘s government deals after Musk criticized Republican spending habits. With $3.8 billion in federal funding at stake this year alone, Tesla’s stock tumbled 14%. The feud now jeopardizes critical NASA missions and the International Space Station program. This high-stakes billionaire drama goes far deeper than mere Twitter spats.
What started as a political disagreement has exploded into an all-out war between two of America’s most notorious billionaires. Former President Donald Trump has threatened to tear up billions in federal contracts with Elon Musk’s companies after the tech mogul criticized Republican spending policies. Talk about a costly Twitter spat.
The stakes couldn’t be higher. SpaceX alone received $3.8 billion in federal funding this year, with tens of billions more in contracts over the past decade. Tesla has been riding high on federal EV incentives too. Now Trump wants to pull the plug on all of it, claiming it would save “billions and billions” of dollars. Musk’s political contributions exceeding $250 million to Trump make the falling out even more dramatic.
Things got ugly fast. Musk blasted Trump’s tax policies and spending habits, suggesting they’d wreck the economy. Trump, clearly stung by his former ally’s betrayal, fired back with threats to demolish Musk’s government gravy train. Removing the $7,500 tax credit for electric vehicles could devastate Tesla’s sales.
Musk and Trump traded fierce jabs over economic policy, with the former president threatening to slash billions in government contracts.
Then Musk went nuclear, dropping hints about Trump’s alleged Epstein connections on social media. Yikes.
The market didn’t take kindly to the drama. Tesla’s stock promptly nosedived 14% as investors processed the possibility of losing those sweet government perks. The impact rippled through the S&P 500 index, given Tesla’s substantial market capitalization weight.
But it’s not just about money – critical space programs hang in the balance. SpaceX’s contracts include ferrying astronauts to the International Space Station and building NASA’s lunar lander. Musk even threatened to halt the Dragon spacecraft program entirely.
The spectacle has analysts worried about the stability of America’s space and clean energy initiatives. When personal vendettas collide with national priorities, nobody wins.
Social media is having a field day with the mud-slinging, while conspiracy theorists are working overtime with Musk’s Epstein file comments.
It’s a stark reminder of how quickly billions in taxpayer dollars can become bargaining chips in a billionaire grudge match. As the feud continues to escalate, one thing’s crystal clear: in the game of egos between Trump and Musk, American innovation might be the biggest loser.
