Trump-Musk bromance descends into brawl over contracts and impeachment

US president breaks silence on Tesla CEO in Oval Office

Donald Trump threatened on Thursday to cut off government contracts to Elon Musk's companies and the world's richest man suggested the US president should be impeached, marking a stark end to an unlikely alliance and leaving onlookers wondering what was next.

The hostilities between the former allies intensified when the president criticised Tesla CEO Musk in the Oval Office and the pair then lobbed verbal barbs at each other on their social media platforms, Trump's Truth Social and Musk's X.

"The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts," Trump posted.

Tesla shares closed down more than 14% on Thursday, losing about $150bn (R2.6-trillion)  in market value in the largest single-day decline in value in its history.

Minutes after the closing bell, Musk replied "Yes" to a post on X saying Trump should be impeached, an unthinkable move in Congress where Trump's Republicans hold majorities in the two chambers.

The trouble between the two started brewing days ago, when Musk denounced Trump's sweeping tax cut and spending bill.

The president initially held his tongue while Musk campaigned to torpedo the bill, saying it would add too much to the nation's $36.2-trillion (R642.1-trillion) in debt.

Trump broke his silence on Thursday, telling reporters he was "very disappointed" with  Musk.

"Elon and I had a great relationship. I don't know if we will anymore," Trump said.

While Trump spoke, Musk responded in real time on X.

"Without me, Trump would have lost the election," wrote Musk, who spent nearly $300m (R5.3bn)  backing Trump and other Republicans in last year's election.

In another post, Musk asserted Trump's signature tariffs would push the US into a recession later this year.

Musk's businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink.

Musk, whose space business plays a critical role in the US government's space programme, said as a result of Trump's threats he would begin decommissioning SpaceX's Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station. Late on Thursday, Musk backed off on the threat.

In a sign of a possible detente to come, Musk subsequently wrote "You're not wrong," in response to billionaire investor Bill Ackman saying Trump and Musk should make peace.

Trump and Musk are political fighters with a penchant for using social media to attack their perceived enemies, and many observers had predicted a falling out.

Musk had become one of Trump's most visible advisers as head of the department of government efficiency, which mounted a sweeping and controversial effort to downsize the federal workforce and slash spending.

After leaving the role, Musk this week targeted what Trump has named his "big, beautiful bill", calling it a "disgusting abomination" that would deepen the federal deficit.

His attacks amplified a rift within the Republican Party that could threaten the bill's prospects in the Senate. Nonpartisan analysts said Trump's bill could add $2.4-trillion to $5-trillion (R42.5-trillion to R88.6-trillion) to the nation's $36.2-trillion (R642.1-trillion) in debt. A prolonged feud between the pair could make it harder for Republicans to keep control of Congress in next year's midterm elections if it leads to a loss of Musk's campaign spending or erodes support for Trump in Silicon Valley.

"Elon really was a significant portion of the ground game this last cycle," said a Republican strategist with ties to Musk and the Trump administration who spoke to Reuters on condition of anonymity.

"If he sits out the midterms, that worries me."

On Tuesday, Musk poste "in November next year, we fire all politicians who betrayed the American people".

Musk had already said he planned to curtail his political spending in the future. His increasing focus on politics provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided.

Reuters