UPDATE 6-Trump threatens Musk's government deals as feud explodes over tax-cut bill
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Trump says 'disappointed' by Musk
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Musk claims Trump 'would have lost' in 2024 without hissupport
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Tesla shares drop 14.3% as Musk and Trump feud
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Musk attacks bill's cost, an issue for some SenateRepublicans
(Adds Musk's comment that Trump should be impeached, paragraphs1-5)
By Nandita Bose and Andrea Shalal
WASHINGTON, June 5 (Reuters) -
President Donald Trump threatened on Thursday to cut offgovernment contracts with billionaire Elon Musk's companies, andMusk suggested Trump should be impeached, as the bromancebetween the president and his former adviser disintegrated intoa barroom brawl.
Trump started the feud in remarks from the Oval Office.Musk quickly responded with posts on his social media site X,and within hours both were trading barbs on their respectivesocial media platforms.
"The easiest way to save money in our Budget, Billionsand Billions of Dollars, is to terminate Elon's GovernmentalSubsidies and Contracts," Trump wrote on his Truth Social.
Their sparring hammered shares of Musk's electricvehicle maker Tesla, which lost about $150 billion in value,closing down 14.3% for the day.
Minutes after the closing bell, Musk replied, "Yes," toa post on X saying Trump should be impeached.
Trump's Republicans hold majorities in both chambers ofCongress and are highly unlikely to impeach him.
The trouble between the two built up over the week. OnTuesday, Musk began denouncing Trump's sweeping tax-cut and
spending bill. The president held his tongue while Musk, hisformer adviser, campaigned to torpedo the bill, saying it wouldadd too much to the nation's $36.2 trillion in debt.
Trump broke his silence on Thursday, telling reportersin the Oval Office he was "very disappointed" in Musk.
"Look, Elon and I had a great relationship. I don't knowif we will anymore," Trump said.
As Trump spoke, Musk responded with increasingly acerbicposts on X.
"Without me, Trump would have lost the election," Muskposted. "Such ingratitude."
Besides Tesla, Musk's businesses include rocket company andgovernment contractor SpaceX and its satellite unit Starlink.The billionaire spent nearly $300 million in the 2024 electionin support of Trump and other Republican candidates.
Musk, whose space business plays a critical role in theU.S. government's space program, said that as a result ofTrump's threats he planned to begin decommissioning SpaceX'sDragon spacecraft. Dragon is the only U.S. spacecraft capable ofsending astronauts to the International Space Station.
SpaceX's cheap, reusable Falcon 9 rockets have made it theworld's most active launch provider. Its vast Starlink networkhas disrupted the global satellite communications market.
EVER-PRESENT ALLY
After serving as the biggest Republican donor in the 2024campaign season, Musk became one of Trump's most visibleadvisers as head of the Department of Government Efficiency,which mounted a sweeping effort to downsize the federalworkforce and slash spending.
Musk was frequently present at the White House and mademultiple appearances on Capitol Hill, sometimes carrying hisyoung son.
Only six days before Thursday's blowup, Trump and Musk helda joint appearance in the Oval Office, where Trump praisedMusk's government service and both men promised to continueworking together.
A prolonged feud between Trump and Musk could make it moredifficult for Republicans to keep control of Congress in nextyear's midterm elections. In addition to his campaign spending,Musk has a huge online following and helped connect Trump toparts of Silicon Valley and wealthy donors.
Musk had already said he planned to curtail his politicalspending in the future.
Soon after Trump's Oval Office comments, Musk polled his 220million followers on X: "Is it time to create a new politicalparty in America that actually represents the 80% in themiddle?"
'KILL THE BILL'
Musk's blistering attacks this week targeted what Trumpcalls his "big, beautiful bill." Musk called it a "disgustingabomination" that would deepen the federal deficit, and hisposts amplified a rift within the Republican Party that couldthreaten the bill's prospects in the Senate.Nonpartisan analysts say Trump's bill could add $2.4 trillionto $5 trillion to the nation's $36.2 trillion in debt.
Trump asserted that Musk really objected to the president'selimination of consumer tax credits for electric vehicles.
Trump also suggested that Musk was upset because he missedworking for Trump.
"He's not the first," Trump said on Thursday. "People leavemy administration ... then at some point they miss it so badly,and some of them embrace it and some of them actually becomehostile."
Musk wrote on X, "KILL the BILL," adding he was fine withTrump's planned cuts to electric vehicle credits as long asRepublicans rid the bill of "mountain of disgusting pork" orwasteful spending.
He also pulled up past quotes from Trump decrying the levelof federal spending, adding, "Where is this guy today?"
Trump, meanwhile, posted on Truth Social that Musk "wentcrazy."
Musk came into government with brash plans to cut $2trillion from the federal budget. He left last week having cutonly about half of 1% of total spending.
DOGE eliminated thousands of federal jobs and cut billionsof dollars in foreign aid and other programs, causing disruptionacross federal agencies and fueling a wave of legal challenges.
Musk's increasing focus on politics provoked widespreadprotests at Tesla sites in the U.S. and Europe, driving downsales while investors fretted that Musk's attention was toodivided.
Following Trump's remarks, a White House official, speakingon background, underscored the shift in the once-close dynamicbetween Musk and Trump.
"The president is making it clear: this White House is notbeholden to Elon Musk on policy," the official said. "Byattacking the bill the way he did, Musk has clearly picked aside."
(Reporting By Nandita Bose and Andrea Shalal, additionalreporting by Jeff Mason, Joey Roulette and Jarrett Renshaw;writing by Joseph Ax; Editing by Scott Malone and DavidGregorio)