Elon Musk and President Donald Trump’s public feud escalated dramatically when Musk abruptly announced the immediate shutdown of SpaceX’s Dragon spacecraft used by NASA. Trump criticized Musk for receiving billions in subsidies and contracts from the government. NASA depends on SpaceX’s Dragon under a $4.9 billion deal to transport astronauts to the ISS, as it’s the sole U.S. spacecraft for manned orbital missions.
After threats to cancel government contracts, Musk initially decided to decommission Dragon, jeopardizing the ISS program. However, after being advised to end their conflict, Musk changed course and announced that Dragon would not be decommissioned, symbolically calling for unity with a “Team America” post featuring the U.S. flag.
The clash unfolded after Trump warned of potential cancellations of deals with Musk and Tesla due to disagreements over tax and spending plans. Musk opposed a significant spending bill, arguing it would increase the budget deficit, contradicting the DOGE cost-cutting efforts he championed.
The discord began during a tense Oval Office meeting, where Trump accused Musk of flip-flopping on support for a government spending bill. Musk refuted seeing the bill before it passed and highlighted his substantial contributions to Trump’s election campaign, nearly $300 million.
Vice President JD Vance expressed support for Trump, standing by him amid the feud with Musk. Musk retaliated by making unverified claims linking Trump to Epstein documents, intensifying the personal nature of the conflict. Despite the tension, billionaire Bill Ackman urged reconciliation for the country’s benefit, a sentiment Musk acknowledged.
Following Musk’s comments, Tesla shares plunged by 8%, compounding a 15% drop from the previous day. Musk also warned of potential recession due to the global market impact of the President’s tariffs.
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