Key takeout
Trump is threatening to terminate his federal contract with Elon Musk after Musk opposed the tax and spending package. Musk filed accusations in X that include Trump and Jeffrey Epstein, bringing Tesla stock down 20%.
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President Donald Trump threatened to terminate his federal contract with Elon Musk today after billionaires publicly opposed Trump’s tax and spending packages and marked a dramatic rupture of political alliances.
As the feud escalates, Trump has posted several times about the true society and Musk’s response to X, Musk wrote:
Time to drop a really big bomb: @RealdonaldTrump is in the Epstein Files. That’s the real reason they’re not public.
Have a great day, DJT!
– Elon Musk (@elonmusk) June 5, 2025
“@RealdonaldTrump is in the Epstein Files. That’s the real reason they’re not public. Have a good day, DJT! I mark this post in the future. The truth comes out.”
The charges came shortly after Trump warned him that he would move to block all federal aid for mask businesses.
“The easiest way to save money on our budget, billions, billions of dollars is to end Elon’s government subsidies and contracts,” Trump posted to the True Society after expressing “very deep disappointment” in Musk at an oval office press conference.
Musk, who just resigned as Trump’s Department’s director of government efficiency, responded with a series of sharply expressed posts.
“Without me, Trump would have lost the election,” he wrote to X.
Tesla shares plummeted 20% after the exchange, eliminating their market value of $150 billion.
The conflict broke out after Musk called Trump’s signature bill “a nasty, hateful” on Tuesday, urging his 220 million X followers to oppose him. He also voted for users about creating a new political party that “actually represents 80% in the middle.”
At a press conference at the White House, Trump described Musk as ungrateful.
“Look, Elon and I had a great relationship. I don’t know if we’ll do that anymore,” Trump said. “Elon was wearing lightly. I asked him to leave.”
Trump defended the bill in a fresh post Thursday afternoon, calling it “one of the biggest bills ever presented to Congress.”
He said, “It’s a record cut in costs, $1.6 trillion, and the biggest tax cut ever. If this bill doesn’t pass, there’s a 68% tax increase, and it’s not much worse. I didn’t create this mess.
The clash comes just a week after the two appeared together at a White House ceremony, marking the end of Musk’s official role.
In 2024, Musk contributed nearly $300 million to the Republican campaign, helping Trump develop a relationship with Silicon Valley donors. White House officials said the administration saw his recent actions as a clear change in loyalty, stressing that it no longer felt an obligation to him.
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