ISLAMABAD: A growing rift between US President Donald Trump and billionaire tech mogul Elon Musk has erupted into a full-scale political and business standoff, with the White House confirming on Friday that Trump is “not interested” in speaking to Musk following their clash over the president’s tax-cut bill.
This public fallout marks a dramatic breakdown in what was once a powerful political alliance.
Trump recently threatened to terminate government contracts awarded to Musk’s companies, including Tesla and SpaceX, stating the move could save “billions” in federal spending.
Musk responded online, suggesting Trump should be impeached and accusing him of pushing the US toward economic recession through excessive tariffs.
SpaceX Contracts in Jeopardy
The feud has placed more than $22 billion worth of SpaceX government contracts at risk, raising concerns about potential disruptions to US space missions.
Musk even threatened to decommission the Dragon spacecraft used for NASA missions, though he later walked back the statement after calls for de-escalation.
— Elon Musk (@elonmusk) June 5, 2025
The conflict also triggered stock market volatility.
Tesla’s shares dropped 14% on Thursday — the largest single-day loss in its history — before rebounding 5% in early Friday trading on initial news of a possible reconciliation call that was ultimately denied.
Political and Financial Fallout
Musk’s vocal opposition to Trump’s tax bill and his pledge to reduce future political donations could complicate Republican plans ahead of next year’s elections.
As former head of the Department of Government Efficiency, Musk had played a key role in Trump’s policy initiatives and election campaigns.
The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE
— Elon Musk (@elonmusk) June 5, 2025
European Union officials, meanwhile, welcomed Musk to consider expanding operations in Europe, signaling growing geopolitical interest in his shifting business priorities.
