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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →On June 5, 2025, Donald Trump threatened to terminate government subsidies and contracts tied to Elon Musk after Musk publicly opposed Trump’s spending bill. The threat targeted federal business involving SpaceX and Starlink, according to the Associated Press. The contemporaneous reporting documented a threat—not completed contract cancellations.
What triggered the rupture?
Musk had spent days criticizing Trump’s spending bill on social media, arguing it would increase the federal deficit and calling it a “disgusting abomination.” Trump responded in the Oval Office: “I’m very disappointed in Elon. I’ve helped Elon a lot.”
Trump then posted on Truth Social: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.” The Associated Press identified contracts held by SpaceX and its internet service, Starlink, as targets of the threat. Associated Press, June 5, 2025
What did Musk say and announce?
Musk replied on X, “Go ahead, make my day.” Hours later, he said SpaceX would begin decommissioning Dragon, the spacecraft used to carry astronauts and cargo to the International Space Station for NASA. This was an announcement made during the dispute; the contemporaneous account does not establish that Dragon was actually decommissioned. Associated Press, June 5, 2025
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Musk also alleged that Trump was “in the Epstein files,” without providing evidence in the exchange. That was Musk’s allegation, not a verified finding in the reporting.
What was at stake for Musk’s businesses?
The threat mattered because it put federal business involving SpaceX and Starlink into the political dispute. It should not be conflated with an established cancellation: the June 5 reporting records Trump’s proposed action, not a completed termination or its financial effect on either company.
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The categories also differ. A subsidy is government financial support; a procurement contract is an agreement to provide goods or services. Trump’s post referred to both subsidies and contracts, while the AP account specifically named SpaceX and Starlink contracts. It does not establish that Tesla incentives were canceled or that any particular program or contract was ended.
What was the immediate financial and political context?
AP reported that Tesla shares fell more than 14% and the company’s market valuation declined by about $150 billion during the immediate market reaction. Those figures describe the reported reaction at the time, not a measure of lasting impact or proof that the feud alone caused the change. Associated Press, June 5, 2025
AP also reported that Musk had spent at least $250 million backing Trump’s campaign. That scale of prior support helps explain why the public break drew attention, but it does not establish what either man would do next. Associated Press, June 5, 2025
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did the alliance end for good?
The public exchange showed a sharp rupture, but the long-term relationship was unresolved in the contemporaneous account. Trump said, “I don’t know if we will anymore,” when asked whether the relationship would continue. Musk wrote on X, “Without me, Trump would have lost the election.” These statements capture each man’s position during the June 5 episode; they do not establish the relationship’s later status. Associated Press, June 5, 2025
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