Kathmandu: A high-profile clash has erupted between Donald Trump and Elon Musk, exposing deep fractures in their previously cozy relationship and sending shockwaves through the political and business worlds.

The feud began when Musk publicly criticized Trump’s new economic bill, sparking an angry response from the former president. Trump, who credited Musk with playing a key role in his election victory, felt betrayed and retaliated by threatening to cut off billions in federal contracts that Musk’s companies—especially SpaceX—depend on.

Posting on his own social media site, Trump wrote:
“The easiest way to save our budget... is to end Elon’s government contracts.”

The threat immediately shook markets, with Tesla’s stock plunging 14% amid concerns over political retaliation.

During a tense Oval Office meeting with German Chancellor Friedrich Merz—who reportedly sat in awkward silence—Trump accused Musk of hypocrisy, suggesting Musk was only lashing out because the bill doesn’t preserve tax credits for electric vehicles, a key benefit for Tesla.

Musk, in his signature blunt style, replied with a dismissive “Whatever” on X (formerly Twitter), followed by a barrage of posts defending his stance. He insisted he wasn’t motivated by subsidies but by concern over the national debt. He claimed that without his support, Trump wouldn’t have won last year’s presidential race and called Trump “ungrateful.”

As the spat intensifies, Republicans in Congress are divided. Some fear Musk’s defection could fracture conservative support in the tech and business community, while others remain aligned with Trump’s “America First” economic approach.

Insiders suggest the White House may ramp up pressure, potentially reopening investigations into Musk’s business dealings or targeting allies of Musk in federal agencies. One Trump adviser warned this could become a “drawn-out war” forcing political and tech elites to take sides.

White House Press Secretary Karoline Leavitt downplayed Musk’s complaints, stating:
“This is an unfortunate episode from Elon... The president is focused on passing this historic piece of legislation and making our country great again.”

With two of the world’s most influential and outspoken figures now at odds, the fallout could have major implications for policy, business, and the 2026 election landscape.