A public dispute has erupted between Elon Musk and President Donald Trump, potentially affecting billions of dollars in federal contracts and subsidies tied to the tech mogul's businesses.

Musk's criticism of Trump's "Big Beautiful Bill" has led to a heated exchange, with Trump threatening to strip Musk's companies of substantial government support, as the Daily Mail reports.

The conflict began when Musk openly criticized a legislative proposal dubbed the "Big Beautiful Bill," which Trump has been vocally supporting.

Musk expressed his discontent via harsh comments on his social media platform X, referring to the bill as a "disgusting abomination" due to its potential impact on the federal deficit.

Financial stakes for Musk's ventures rise

In response, Trump threatened to cut off federal assistance to Musk’s companies, which could place significant financial burdens on both Tesla and SpaceX. Musk's companies have secured approximately $38 billion from governmental contracts over the last twenty years.

SpaceX, Musk's aerospace company, stands as one of the biggest recipients, having received around $22 billion in federal funds. Notably, the company was awarded $3.8 billion in just the past year.

Tesla, Musk's electric vehicle venture, has also greatly benefited from regulatory credits designed to support zero-emission initiatives, accruing $11.4 billion.

These credits have been instrumental in fostering Tesla’s growth, despite not making up the majority of its revenue. They have contributed a substantial 32% of Tesla’s profit margins since 2014.

Contracts at stake

There remain 52 active federal contracts poised to funnel an additional $11.8 billion into Musk's businesses. However, these funds are now at risk due to the escalating standoff with Trump.

Meanwhile, Starlink, Musk's satellite internet venture, has only received a modest $6 million in federal assistance over the years 2022 and 2023.

The ongoing public feud took another turn when Musk accused Trump of being involved in the highly controversial Epstein files, a claim to which Trump has yet to issue a direct rebuttal.

Tesla's market value impacted by feud

The tension has rattled investors, with Tesla shares plummeting nearly 12% as of Thursday. Market analysts suggest that the sharp dip reflects broad concern over potential financial implications for Musk’s diversified portfolio.

Though this conflict marks a stark departure from times when Trump previously endorsed Musk's electric vehicles, it highlights the complexities of public figures and their shifting alliances.

As the verbal battle continues to unfold, both Musk and Trump's comments are closely monitored for any hint of reconciliation or further discord.

Trump's position remains resolute, expressing confusion over why former President Joe Biden did not take similar actions during his tenure.

Broader implications awaited

Trump emphasized that cutting public funding to Musk’s enterprises would substantially reduce Budget allocations, suggesting that such measures could save "Billions and Billions of Dollars."

"I don't mind Elon turning against me," Trump stated, adding that it should have occurred months prior. He maintains that the legislative proposal remains one of the most significant presented to Congress.

This public exchange underscores the intricate dynamics between business interests and political power. Stakeholders will be observing closely to discern any potential impact on existing federal support mechanisms for Musk's initiatives.