President Trump blasts Elon Musk as 'crazy' — threatens to terminate SpaceX subsidies and contracts

A heated exchange erupted between U.S. President Donald Trump and Tesla CEO Elon Musk on Thursday, June 5, when Trump publicly labeled Musk "crazy" and threatened to revoke government contracts held by his companies over a major tax bill dispute, reported CNBC. SpaceX and Tesla are recipients of U.S. government contracts and subsidies and Trump's direct threat to pull subsidies has created a stir.  SpaceX President and COO Gwynne Shotwell estimates that the space technology company receives $22 billion in federal spending, according to The Washington Post.

Trump, in a Truth Social post, asserted that “the easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts.” He also expressed surprise that President Biden hadn't already taken such action. Musk, on the other hand, swiftly retorted on X with a defiant, “Go ahead, make my day.” He then escalated the situation, stating that in response to Trump's threat, SpaceX would "begin decommissioning its Dragon spacecraft immediately.” However, he later rescinded.

Beyond his leadership at Tesla, Elon Musk's extensive business empire encompasses several other ventures. These include SpaceX, dedicated to space exploration and satellite communication; xAI, an artificial intelligence company; The Boring Company, focused on tunnel infrastructure; Neuralink, a neurotechnology firm; and the social media platform X. Following Trump's remarks, Tesla's stock, already experiencing a downturn, saw a significant plunge. This dramatic public clash between the world's wealthiest individual and the U.S. president is particularly notable, occurring less than a week after the two had a seemingly amicable meeting in the Oval Office, where they exchanged praise as Musk concluded his involvement with the Department of Government Efficiency (DOGE). 

By the afternoon of June 5, the animosity between Musk and Trump intensified. Musk took to X, complaining about Trump's "ingratitude" and boldly asserting, “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.” In a subsequent post, Musk even suggested supporting Trump's impeachment and advocating for Vice President JD Vance to replace him. 

Later on Thursday, Trump unleashed his own scathing Truth Social post, claiming that Musk had been "wearing thin" towards the end of his tenure as a "special government employee" and that he had asked him to leave. Musk swiftly countered, labeling this an "obvious lie." This angry exchange came as Musk publicly condemned the president's substantial budget bill. Trump, in his post, further alleged that Musk's "crazy" reaction was a result of him "taking 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)." Trump had also stated in the Oval Office on Thursday that Musk was upset due to the budget package's cuts to electric vehicle credits. 

SpaceX holds a significant position as one of the nation's largest federal contractors. In fiscal year 2024 alone, the company secured $3.8 billion through hundreds of government contracts. Since 2008, data from FedScout indicated that SpaceX has received over $20 billion in contracts from various agencies, including NASA and the US Air Force, reported CNBC. Looking ahead, some of Musk's companies are poised to receive additional federal funding from both existing and new government agreements. Notably, SpaceX is also a leading contender to secure a critical role in Trump's proposed "Golden Dome" missile defense system.