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Trump Threatens to Cancel Musk’s Government Contracts in Feud Over ‘Big Beautiful Bill’

A clash over deficit fears prompted the president to target Musk’s subsidies after the tech billionaire criticized a sweeping tax-spending measure.

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U.S. President Donald Trump and Elon Musk attend a press conference in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Nathan Howard/File Photo
Elon Musk and Donald Trump seem to be in a showdown mode.
President Donald Trump speaks as he holds a box containing a key before presenting it to Elon Musk, left, during a news conference in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci)

Overview

  • Musk announced that SpaceX will begin decommissioning its Dragon spacecraft in response to the threatened contract terminations.
  • The billionaire alleged that Trump is named in unreleased Jeffrey Epstein records, claiming this explains why documents remain sealed.
  • Tesla’s stock tumbled more than 14% on Thursday, wiping out about $150 billion in market value during the high-profile dispute.
  • The feud ignited after Musk warned that the 'Big Beautiful Bill' could add roughly $2.4 trillion to the federal deficit.
  • Senate leaders now face added pressure as the public clash casts uncertainty over the bill’s path through Congress.