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Trump and Musk Rift Deepens Over Tax Bill and Federal Spending

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Trump and Musk

President Donald Trump is not seeking a conversation with Elon Musk, a White House official said Friday, suggesting the deepening rift between the two prominent figures shows no sign of resolution.

The official, speaking anonymously, confirmed that no phone call between the president and the Tesla and SpaceX CEO was scheduled, despite earlier claims from a different source that the two had planned to speak. Trump, speaking to multiple media outlets, downplayed any immediate concern about Musk.

“I’m not even thinking about Elon. He’s got a problem, the poor guy’s got a problem,” Trump said in an interview with CNN.

Trump is even considering getting rid of the red Tesla Model S he purchased in March, which had been showcased on the White House lawn, according to the official.

Musk has not responded directly to Trump but has continued to voice opposition to the expansive Republican tax and spending package that contains much of the president’s domestic agenda. On his platform X, Musk endorsed posts warning that the bill could politically damage Republicans and worsen the national debt, which now stands at $36.2 trillion. He agreed with a comment suggesting Trump retaliated against Musk for criticizing Congress.

Trump and Musk Now Clash Publicly Over Federal Budget Plans, Political Influence, and Government Contracts

Tensions between the two figures came to a head a day earlier, when Trump hinted at terminating government contracts with Musk’s companies, including SpaceX and Starlink. The conflict marks a dramatic breakdown of a previously close alliance.

Despite the turmoil, Tesla stock rebounded slightly on Friday after a sharp 14% drop the previous day, which wiped out $150 billion in market value — the largest single-day loss in the company’s history.

Trump and Musk

Musk’s influential allies have remained mostly silent during the feud, though investor James Fishback urged Musk to make amends. “President Trump has shown grace and patience at a time when Elon’s behavior is disappointing and frankly downright disturbing,” Fishback said.

Musk, who is the world’s wealthiest individual, played a major financial role in Trump’s 2024 campaign and had been appointed to lead a federal workforce reduction initiative. Although Musk promised deep budget cuts, his efforts only trimmed about 0.5% from federal spending — far short of the projected $2 trillion reduction.

Following the announcement of the Republican-backed tax plan, Musk denounced it as a “disgusting abomination,” putting him at odds with Trump and complicating the bill’s journey through Congress. The measure narrowly cleared the House and is now under Senate review, with analysts projecting it could add $2.4 trillion to the national debt over the next decade.

House Speaker Mike Johnson, who has remained in contact with Musk, expressed hope for reconciliation. “I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to craft legislation,” he said during an interview on CNBC.

Trump had initially remained quiet as Musk campaigned against the bill, but finally addressed the issue on Thursday, saying he was “very disappointed” in the tech mogul. The two then exchanged personal jabs online. Musk claimed Trump wouldn’t have won without his support and criticized the administration’s import tariffs, saying they could trigger a recession. He also signaled support for impeachment — a highly unlikely scenario given Republican control of Congress.

When Trump floated the idea of ending federal contracts with Musk’s companies, Musk responded by threatening to retire SpaceX’s Dragon spacecraft, which is critical to U.S. space missions. He later walked back the statement.

In a potential olive branch, Musk responded, “You’re not wrong,” to investor Bill Ackman’s post suggesting the two should reconcile.

A continued public clash could pose political risks for Republicans ahead of the next election cycle, especially if Musk withdraws his financial backing or prompts other tech leaders to distance themselves from the GOP. Musk has already indicated plans to scale back his political donations and recently called for voters to remove politicians he believes have failed the public.

The controversy has sparked protests at Tesla facilities, impacting sales and stoking investor concerns about Musk’s divided focus between his companies and political engagements.