Trump Vs Musk: Tesla CEO Challenges US President To Cancel Federal Contracts — 'Go Ahead'

Elon Musk and Donald Trump are embroiled in a public feud. Trump threatened to cut Musk's companies' federal contracts, prompting Musk to dare him.

Elon Musk and Donald Trump

Source : Social Media

In a fiery exchange that's quickly turning into one of the most high-profile political-business feuds in recent memory, Elon Musk has openly challenged former US President Donald Trump, daring him to follow through on a threat to cut off his companies' federal contracts.

The drama began when Trump, posting on his platform Truth Social, took a jab at the billionaire entrepreneur, writing: "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!"

Musk wasted no time firing back. Sharing Trump's remarks on his platform X (formerly Twitter), the Tesla and SpaceX CEO responded with a bold taunt: "This just gets better and better. Go ahead, make my day…"

This just gets better and better 🤣🤣

Go ahead, make my day … https://t.co/APmy7cV8iL

— Elon Musk (@elonmusk) June 5, 2025

But the exchange didn't end there. Trump escalated the feud with another barbed message on Truth Social, accusing Musk of going off the rails: "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 (that he knew for months I was going to do!), and he just went CRAZY! [sic]"

For the first time, Trump publicly acknowledged the strained relationship during a July 5 Oval Office press interaction with German Chancellor Friedrich Merz. Reflecting on the fallout, Trump said, "Elon and I had a great relationship. I don't know if we will anymore. I'm very disappointed in Elon. I've helped Elon a lot." Their rift appears to have deepened over fundamental disagreements, especially around Trump's hallmark tax-and-spending legislation, which Musk has slammed as the "big, ugly spending bill".

Musk even floated the idea of a new political party. In a poll shared with his tens of millions of followers on X, he asked: "Is it time to create a new political party in America that actually represents the 80% in the middle?" As if that wasn't enough for the feud, Musk also took credit for Trump's past electoral success.

In a separate post, he claimed: "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate."

What Is The EV Bill Feud Between Trump And Musk?

At the heart of the Musk-Trump feud is a tax bill passed by the House in May 2025. Trump's "One Big, Beautiful Bill" includes Section 112002, which terminates the federal EV tax credit earlier than planned, moving the expiration date from December 2032 to December 31, 2025. Starting in 2026, Americans would lose access to the incentive for purchasing electric vehicles. The bill also introduces annual fees: $250 for EV owners and $100 for hybrid drivers.

Musk slammed Trump's claim that he knew about the EV provision in advance. "False," he posted on X. "This bill was never shown to me even once and was passed in the dead of night."

Adding to the backdrop are EPA emissions rules finalised in 2024, requiring automakers to cut tailpipe emissions by 50% by 2032, effectively pushing EV sales beyond half of all new vehicles.

Musk had initially backed the bill while serving in Trump's Department of Government Efficiency, but reversed course after the EV provisions surfaced. Trump claims Musk changed his stance out of self-interest, arguing EVs harm US autoworkers and rely heavily on subsidies. Musk maintains his opposition is principled, not profit-driven.