Trump says Elon Musk ‘lost it,’ hints at pulling government contracts from his companies

In a stunning escalation of their public feud, President Donald Trump has labeled Tesla CEO Elon Musk "CRAZY" and threatened to cut government contracts from his companies, prompting a defiant response from the billionaire entrepreneur. The spat began when Trump took to Truth Social to express his frustration with Musk's vocal opposition to his massive budget bill, which the president claims will save the country billions of dollars. Musk, who has been actively urging Senate Republicans to "kill the bill," has aggressively trashed the package on the grounds that it will add trillions of dollars to the nation's deficits. The president's comments have sparked a heated exchange between the two men, with Musk firing back on X, "Go ahead, make my day." He later upped the ante, announcing that SpaceX would begin decommissioning its Dragon spacecraft immediately if Trump follows through on his threat to cancel government contracts. The feud has significant implications, given Musk's extensive business interests and his companies' substantial reliance on government contracts. SpaceX, for example, is one of the nation's largest federal contractors, securing $3.8 billion over hundreds of government contracts in fiscal year 2024 alone. The blow-up between Trump and Musk comes less than a week after they swapped compliments during an Oval Office send-off celebrating Musk's time leading the Department of Government Efficiency. However, by Thursday afternoon, Musk was griping on X about Trump's "ingratitude" and declaring, "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate." Musk even accused the Trump administration of refusing to release records pertaining to the late sex offender Jeffrey Epstein, claiming that the president "is in the Epstein files." Trump has denied any involvement in Epstein's criminal behavior, and Musk provided no evidence to back up the claim. The feud has sparked a wider debate about the relationship between government and big business, with some Republicans leaping to Trump's defense and others backing Musk's opposition to the budget bill. Former Trump advisor Steve Bannon has called for Trump to investigate Musk's "immigration status, his security clearance and his history of drug abuse," as well as his "relationship with the Chinese Communist Party." Meanwhile, Musk's campaign against the bill has garnered support from Republican fiscal hawks, who share his concerns about the package's impact on the nation's deficits. As the spat continues to escalate, it remains to be seen what consequences Trump's threat to cut government contracts will have on Musk's businesses and the wider economy. The financial implications of the feud are already being felt, with Tesla's share price tanking after Trump's comments. The company's stock, which was already trading sharply lower, plummeted in response to the president's threat to cut government contracts. With Musk's companies on track to take in additional federal dollars for years to come, either from existing contracts or from newly inked government business, the stakes are high. As the situation continues to unfold, one thing is clear: the public feud between Trump and Musk has significant implications for the business world, the government, and the country as a whole. In conclusion, the feud between Trump and Musk is a stark reminder of the complex and often fraught relationship between government and big business. As the two men continue to exchange blows, it remains to be seen what the ultimate consequences will be for Musk's companies, the government, and the wider economy. One thing is certain, however: the spat has sparked a wider debate about the role of government in the economy and the influence of big business on public policy. As the situation continues to unfold, the world will be watching with bated breath to see what happens next in this high-stakes drama.