Main to remember
- Trump threatens to terminate federal contracts with Elon Musk after Musk opposed a set of taxes and expenses.
- Musk made accusations involving Trump and Jeffrey Epstein on X, resulting in a 20% drop in Tesla shares.
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President Donald Trump threatened to terminate federal contracts with Elon Musk today after the billionaire publicly opposed the Trump taxes and expenditure, marking a dramatic break in their political alliance.
As the quarrel intensified, Trump displaying several times on Truth Social and Musk responding on X, Musk wrote:
It’s time to drop the very large bomb:@Realdonaldtrump is in Epstein files. This is the real reason why they were not made public.
Have a good day, DJT!
– Elon Musk (@elonmusk) June 5, 2025
“@Realdonaldtrump is in Epstein files. This is the real reason why they were not made public. Spend a good day, DJT! Mark this post for the future. The truth will be released.”
The accusation occurred shortly after Trump warned that he would move to cut all the federal support for Musk companies.
“The easiest way to save money in our budget, billions and billions of dollars, is to terminate the subsidies and government contracts from Elon,” said Trump on Trum Social, hours after expressed a “very deep disappointment” in Musk at an Oval Office press conference.
Musk, who had just resigned as director of the Trump government efficiency department, replied with a series of highly written messages.
“Without me, Trump would have lost the elections,” he wrote on X.
Tesla shares plunged 20% after the scholarship, erasing $ 150 billion in market value.
The conflict broke out after Musk qualified Trump’s signature bill on Tuesday on Tuesday “disgusting abomination” and urged 220 million x subscribers to oppose it. He also questioned users about the creation of a new political party “which actually represents 80% in the middle”.
At a press conference in the White House, Trump described Musk as ungrateful.
“Listen, Elon and I had an excellent relationship. I don’t know if we want it,” said Trump, saying that he had already rejected Musk from his post. “Elon wore thin. I asked him to leave. “
Trump defended the bill in a new post Thursday afternoon, appealing to him “one of the biggest bills ever presented at the Congress”.
He added: “It is a record reduction in expenses, 1.6 billion of dollars, and the greatest tax reduction never given. If this invoice does not pass, there will be a tax increase of 68%, and things very worse than that. I have not created this mess, I am right there to repair it.”
The confrontation comes just a week after the two appeared together during a white house ceremony marking the end of Musk’s official role, where his team had reduced billions of foreign aid and thousands of federal jobs.
In 2024, Musk contributed nearly $ 300 million to republican campaigns and helped Trump establish links with donors from Silicon Valley. An official of the White House said that the administration considers its recent actions as a clear change in allegiance and stressed that it no longer felt any obligation towards it.
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