'I'm Very Disappointed': Trump Threatens to Cut Musk's Government Contracts as Feud Escalates Over GOP Spending Bill

What Happened?

President Donald Trump unleashed sharp criticism on Thursday against his former ally Elon Musk over the recent disapproval of his House-passed policy bill.

Trump told White House reporters that he 'helped Elon a lot' and was 'very surprised' following Musk's strong remarks regarding his 'big, beautiful bill.'

'I'm very disappointed because Elon knew the inner workings of this bill,' Trump said.

He added that Musk 'just went CRAZY!' due to frustration about the bill that would cut the electric vehicle tax credit designed to incentivize electric vehicle purchases.

It's a tax credit implemented by the former Biden administration that Musk's company Tesla reportedly became vocal about.

'Elon’s upset because we took the EV mandate, which was a lot of money for electric vehicles and they’re having a hard time with electric vehicles,' Trump stated. 'They want us to pay billions of dollars in subsidy. Elon knew this from the beginning.'

The president said Musk was also partially upset over the White House pulling his ally who was nominated to lead NASA.

'He wanted that person, a certain person. I can understand why he’s upset,' said Trump who didn't 'think it was appropriate' to nominate the Democrat prospect.

Although Trump believed he and Musk had a great relationship, he said, 'I don't know if we will anymore.'

Tesla shares tanked as high as 16% on Thursday after Trump threatened to terminate Musk’s governmental contracts.

Why it Matters

Some view Trump's remarks as the most direct criticism yet of Musk.

But the former White House special advisor took to social media to respond swiftly.

'Without me, Trump would have lost the election, Dems would control the House, and the Republicans would be 51-49 in the Senate,' Musk said on Thursday.

Musk recently launched a new slogan on his owned platform X that instructed millions of his followers to call on Congress members to 'KILL the BILL.'

The momentum surrounds an analysis that recently revealed a potential blow to the nation's future deficit over the next 10 years.

Trump's domestic policy bill would increase the national debt deficit by $2.4 trillion, according to the nonpartisan Congressional Budget Office.

Despite $3.7 trillion tax cuts, the CBO pointed out nearly 11 million people would be without health insurance in 2034.

Trump has still pushed for Senate leaders to have the final bill on his desk by July 4.

How it Affects You

The White House continues to defend against criticism of Trump's massive bill despite economic risk.

Sen. Mike Lee of Utah and Gov. Ron DeSantis of Florida are just a few conservative members who have fueled support of spending cuts.

'No matter which party,' members like Sen. Rand Paul of Kentucky said, he 'opposes deficit spending.'

It points to a growing anticipation in the Senate as they prepare to review options.

Senate revisions are increasingly certain despite a previous plea from House Speaker Mike Johnson for as few cuts as possible.

It's a concern Speaker Johnson has regarding the bill which narrowly passed the House.

Some officials warn if this bill fails, the U.S. will increase its chances of a recession.