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Trump Threatens to Terminate Musk’s Government Contracts in Intensifying Dispute

The president’s posts on Truth Social push to end Musk’s subsidies as the quickest budget cut; Musk has labeled claims of a White House expulsion false.

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Overview

  • On June 5, Trump wrote that eliminating Elon Musk’s federal contracts and subsidies would save “billions and billions” in government spending.
  • He reiterated that he rescinded Musk’s electric vehicle mandate after allegedly asking the Tesla CEO to leave the White House for “wearing thin.”
  • Elon Musk took to Twitter to call Trump’s account of his White House expulsion “an obvious lie.”
  • The public barbs follow a growing rift that deepened when Musk claimed credit for Trump’s 2024 election victory.
  • The dispute casts uncertainty over Musk’s advisory role and the future of Tesla’s ties with federal agencies.