Trump hints at review of Musk's government contracts
What's the story
United States President Donald Trump has hinted at a possible review of government contracts held by Elon Musk's companies. The announcement comes as tensions rise over Musk's criticism of Trump's tax and spending bill, which he called a "disgusting abomination." Speaking to reporters aboard Air Force One, Trump said, "We'll take a look at everything. I look at everything. He's got a lot of money. He gets a lot of subsidy."
Government contracts
Musk's companies are central to several government projects
Musk's companies are central to several government projects, including NASA missions, defense initiatives, EV incentives, and infrastructure. Despite the escalating feud, Trump downplayed any immediate plans for direct talks with Musk. He said, "No, I don't have any plans. Somebody made a mistake, I'm not even thinking about that." However, he wished Musk well with Tesla. "I hope he does well with Tesla," Trump said.
Twitter Post
Twitter Post
.@POTUS on @elonmusk: "I just wish him well." pic.twitter.com/2PuFiq5dPe
— Rapid Response 47 (@RapidResponse47) June 6, 2025
Tesla speculation
Tesla car in White House lawn
A White House official hinted that Trump might dispose of the red Tesla Model S he bought in March after displaying it on the White House lawn. Musk has slammed Trump's tax and spending bill on social media platform X, calling it bloated and unfair to clean energy industries. He also backed calls for a new political party to represent "the 80% in the middle."
Legislative challenges
Musk earlier backed Trump's presidential campaign
The conflict between Trump and Musk is a radical departure from their previous alliance. Musk had backed Trump's 2024 presidential campaign financially and was appointed to lead an initiative to reduce the federal workforce and spending. However, his recent opposition to Trump's legislative agenda has complicated efforts to pass the bill in Congress, where Republicans only hold a slight advantage. House Speaker Mike Johnson expressed hope for a resolution, stating he has been in communication with Musk.
Stock fluctuations
Tesla's stock has been volatile amid public feud
Tesla's stock has been volatile amid the public feud but has shown signs of recovery after initial losses. Trump remains focused on broader international priorities and legislative efforts despite the ongoing dispute with Musk. He asserted confidence in his legislative push, noting growing support for his bill: "I don't have too many critics. Maybe Rand Paul or somebody. But over the last 24 hours, it's even solidified."