06/05/2025

Trump Threatens Musk's Government Deals as Feud Explodes over Tax Bill

This isn't how effective governments are run

President Donald Trump erratically threatened on Thursday to cut off government contracts with companies owned by billionaire Elon Musk, as the alliance between the world's most powerful man and its richest erupted into a rancorous public fight.

The feud, which exploded in spectacular fashion over the course of a few hours, pushed shares of electric vehicle maker Tesla down dramatically. The company, where Musk serves as CEO, closed down 14.3 percent for the day and lost about $150 billion in value after Trump and Musk began their childish war of words.

Trump lashed out at Musk in comments in the Oval Office. For two days, the billionaire, who had been Trump's close adviser, campaigned to torpedo the sweeping tax-cut and spending bill, the Republican president's top legislative priority, saying it would add too much to the nation's $36.2 trillion in debt. Even as Trump spoke, Musk responded with posts on his social media platform X, formerly known as Twitter.

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