Quick Hit:

President Donald Trump is threatening to axe Elon Musk’s billions in government contracts after the tech billionaire took credit for Trump’s 2024 victory and slammed the administration’s signature spending bill.

Key Details:

• Trump said terminating Musk’s subsidies and federal contracts is “the easiest way to save money.”
• Musk claimed Trump “would have lost” the election without his help and called the president “ungrateful.”
• The spat comes after Musk trashed Trump’s “One Big, Beautiful Bill” as a “disgusting abomination.”

Diving Deeper:

A once-strong alliance between President Donald Trump and Elon Musk may be unraveling in real time, with the president publicly floating the idea of cutting off the Tesla and SpaceX CEO from billions in federal contracts and subsidies.

In a Thursday post to Truth Social, President Trump hinted at retaliation for what he described as Musk’s betrayal, stating: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”

The remark followed a heated online exchange, prompted by Musk’s assertion that Trump owes him his political comeback. “Without me, Trump would have lost the election, Dems would control the House, and the Republicans would be 51-49 in the Senate,” Musk wrote on X. In a follow-up, he added, “Such ingratitude.”

Tensions boiled over after Musk lambasted the president’s flagship legislative win — the “One Big, Beautiful Bill” — a sweeping spending package that eliminates tax credits for electric vehicles. “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,” Musk posted. “Shame on those who voted for it: you know you did wrong.”

Trump responded sharply during a White House meeting with German Chancellor Friedrich Merz, expressing both shock and disappointment. “I’ve always liked Elon, and so I was very surprised,” Trump said. “He hasn’t said anything about me that’s bad. I’d rather have him criticize me than the bill. Because the bill is incredible.”

He further accused Musk of throwing a tantrum after losing influence over federal EV policy. “Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted... and he just went CRAZY!”

Trump emphasized that Musk had been fully briefed on the bill’s content long before it passed. “He knew every aspect of this bill. He knew it better than almost anybody. And he never had a problem until right after he left. I’m very disappointed in Elon. I’ve helped Elon a lot,” he added.

The confrontation marks a rare public rift between two high-profile figures once aligned on key political and economic issues. Whether this feud leads to real consequences for Musk’s lucrative federal ventures remains to be seen, but one thing is clear: the political honeymoon is over.

 (Pool via AP)