Trump Threatens Musk with Contract Cuts Over Democratic Support

Palm Beach, USA - The political landscape in the U.S. has been rocked by an escalating feud between President Donald Trump and Tesla CEO Elon Musk. This public fallout, which began on June 5, 2025, has drawn significant attention as both figures navigate their tumultuous relationship amid critical electoral stakes. Trump made it clear that he is not interested in mending fences with Musk, stating that he would impose „serious consequences“ if Musk chooses to support Democratic candidates in the 2026 elections, as Citizen Digital reports.

Trump has a history of supporting Musk, but that appears to be firmly in the rearview mirror now. He indicated that his relationship with the tech mogul is definitively over, emphasizing a shift in focus to other priorities. This break intensified after Musk criticized Trump’s proposed funding bill, calling it a “disgusting abomination” that could significantly boost the federal deficit.

In this ongoing spat, the stakes go beyond mere rhetoric. Musk’s businesses, particularly SpaceX and Tesla, are heavily reliant on federal contracts, with estimates of government benefits reaching as high as $38 billion, according to NBC News. Trump’s threats to cut these contracts as a means of budget reduction add an alarming layer to this feud. He suggested that terminating Musk’s contracts could save „billions and billions,“ a claim Musk took seriously enough to signal the decommissioning of SpaceX’s Dragon spacecraft, which has been crucial for NASA’s missions.

Personal Attacks and Political Implications

The conflict quickly devolved into personal attacks, with Musk hinting at Trump’s alleged connections to convicted sex offender Jeffrey Epstein—an unverified claim that he later deleted. Meanwhile, Trump accused Musk of insincerity regarding his criticisms of the Republican-backed funding bill, suggesting his concerns arose only when the electric vehicle mandate came under fire. Musk, in response, firmly denied Trump’s assertions, stating that the bill had been passed without being shown to him.

This back-and-forth has left many wondering about the broader implications. Vice President JD Vance attempted to quell tensions by suggesting that Musk was making a „huge mistake“ and expressing hope for reconciliation. Vance defended Trump against Musk’s allegations and supported the controversial budget bill, which is projected to cause a shortfall of $2.4 trillion over ten years while leaving millions without health insurance, as reported by Citizen Digital.

The feud has also had tangible effects on the stock market. Following the public disagreements, Tesla’s stock took a dive, plummeting by 14% in a single day, contributing to a year-to-date decline of approximately 25%. Musk’s critiques of Trump have seemingly put him in the crossfire of political and financial fallout, showcasing how intertwined corporate interests and political allegiance can be in today’s landscape.

As tensions continue to simmer between Trump and Musk, it’s clear that their relationship may have reached a boiling point. The implications of this feud stretch far beyond personal animosities, raising questions about federal support for Musk’s companies and the potential repercussions for the 2026 elections. With each passing day, this saga unfolds, reflecting the complex intertwining of technology, politics, and personal relationships in the current era.