President Donald Trump has ignited a heated exchange with Tesla CEO Elon Musk, labeling him “CRAZY” and threatening to revoke government contracts for his businesses amid a contentious debate over a major tax bill. Musk quickly retorted, “Go ahead, make my day,” highlighting the tension between the two influential figures.
Musk, who oversees a diverse range of companies including Tesla, SpaceX, Neuralink, and The Boring Company, has been a vocal critic of Trump’s proposed budget, particularly due to its significant cuts to electric vehicle (EV) credits. As a result of Trump’s remarks, Tesla’s stock, already under pressure, took a further decline.
This public dispute follows a surprising moment of camaraderie earlier in the week, when Trump and Musk exchanged compliments during a farewell event celebrating Musk’s role as a “special government employee” in the Department of Government Efficiency. However, tensions flared when Musk criticized Trump’s budget plan, alleging it could add trillions to the national deficit. He has actively urged Senate Republicans to “kill the bill,” which was integral to Trump’s domestic priorities.
In a pointed Truth Social post, Trump claimed that Musk’s demeanor had become “wearing thin” towards the end of his government role, expressing that he had asked Musk to step down. He further stated Musk was “upset” about the elimination of an EV mandate, saying, “I took away his EV Mandate that forced everyone to buy electric cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!”
The implications of Trump’s threat are significant, as Musk’s businesses, particularly SpaceX, have extensively relied on federal contracts. Reports indicate that SpaceX secured $3.8 billion in contracts in fiscal year 2024 alone, drawing over $20 billion from NASA and the U.S. Air Force since 2008. Additionally, analyses reveal Musk and his ventures have received around $38 billion in various forms of government support, including contracts and subsidies, over the past two decades.
As Musk’s enterprises position themselves for future federal contracts, including potential key roles in plans like Trump’s “Golden Dome” missile defense program, the conflict may have far-reaching consequences for both Musk and the broader tech and automotive industries.
As this story unfolds, developments are expected, and the stakes are high not only for these two powerful men but also for the future of electric vehicle initiatives in the U.S. This situation marks a striking intersection of business and politics, highlighting the complexities surrounding government contracts and public funding in today’s economy.
Stay tuned for updates as this breaking news continues to evolve.
Original Source: https://www.cnbc.com/2025/06/05/trump-musk-crazy-government-contracts.html
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Publish Date: 2025-06-06 01:22:00
