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    Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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Elon Musk vs Donald Trump: What Led To a Billion-Dollar Fallout?

Elon Musk and President Donald Trumpโ€™s public clash took a dramatic turn on Friday. In a fresh controversy, Musk has announced the immediate shutdown of SpaceXโ€™s Dragon spacecraft, a key vehicle used by NASA.ย 

Musk Slams Spending Bill, Trump Threatens to Cut Billions

Trump criticized Musk and said that the government should stop giving him billions of dollars in subsidies and contracts. It’s important to understand that NASA relies on SpaceXโ€™s Dragon to transport astronauts to and from the ISS, under a $4.9 billion deal. Itโ€™s currently the only U.S. spacecraft that can carry humans into orbit.

Musk Backs Off After โ€œTeam Americaโ€ Moment

This move would disrupt the global ISS program, with only Russiaโ€™s Soyuz as the next option. But after a user urged Musk and Trump to cool down their fights, Musk reacted, saying, โ€œGood advice. Ok, we wonโ€™t decommission Dragon.โ€ Soon after, he posted a photo of the US flag with the Dragon spacecraft in the background, saying “Team America”.

This came after President Trump warned he might cancel government deals with Musk and Tesla, after the billionaire strongly criticised the Presidentโ€™s tax and spending plans. 

Musk was disappointed by the massive spending bill because he claimed that it increases the budget deficit instead of reducing it, and it goes against the efforts of the DOGE cost-cutting team he led.

Their clash started a day earlier during a tense Oval Office meeting. Trump expressed disappointment, saying that Musk had previously supported a key government spending bill but suddenly changed his mind. For the unversed, Trump had given Musk a big farewell as he wrapped up his role leading the governmentโ€™s cost-cutting team, DOGE.

But Musk said that it wasn’t true that he saw the bill before it passed.  He added โ€œWhateverโ€ along with a video where Trump said Musk was upset about losing electric vehicle subsidies. Musk even said that Trump wouldnโ€™t have won the election without his help, pointing out he was Trumpโ€™s biggest campaign donor, giving almost $300 million.

JD Vance Sides with Trump

Vice President JD Vance said he is โ€œproud to stand besideโ€ President Trump, calling him a trusted leader. This came after Musk backed calls for Trump to be impeached and replaced by Vance.

The clash has also turned personal now as Musk has recently fired back with an unverified claim linking Trump to Epstein documents, adding fuel to the fire. One user on X joked, โ€œThe big beautiful bill led to the big beautiful breakup,โ€ over the tussle between the two. Despite the heated tensions, when billionaire investor Bill Ackman urged the two to โ€œmake peace for the good of the country,โ€ Musk replied, โ€œYouโ€™re not wrong.โ€

Tesla Tanks 8%

Tesla shares dropped sharply, falling 8% after Musk’s comments. The shares were down 15% on Thursday. Musk has also warned that the Presidentโ€™s tariffs, which shook global markets, might cause a recession in the second half of the year.

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