The Blubber

Donald Trump posted on social media that the easiest way to save billions in the federal budget would be to end government subsidies and contracts awarded to Elon Musk, expressing surprise that the Biden administration hadn’t already taken that step. Over the years, Musk and his companies have received at least $38 billion in government contracts, loans, subsidies, and tax credits, according to public analysis.

In response to a tweet sharing Trump’s message, Musk replied defiantly, “Go ahead, make my day...” He then reposted Trump’s statement, adding that SpaceX would begin decommissioning its Dragon spacecraft immediately if government contracts were canceled.

The feud escalated further when Musk suggested without evidence on social media that Trump appears in unreleased government files related to the late convicted sex offender Jeffrey Epstein. Although court documents previously named Trump among numerous public figures connected to Epstein, no wrongdoing was alleged against him.

During his presidential campaign, Trump promised to release more Epstein-related files. Some were declassified earlier this year but contained no major new revelations.

Epstein was arrested in 2019 on sex trafficking charges and died by suicide while awaiting trial. Trump, president at the time, said he knew Epstein socially but had a falling out years ago.

Meanwhile, Tesla shares fell more than 15%, marking their steepest one-day drop since 2020, as investors reacted nervously to the ongoing feud. Ross Gerber, an early backer of Musk and a prominent investor, publicly urged Musk to stop posting on social media, saying the controversy was damaging Tesla’s brand. Gerber’s firm had already sold about 10% of its Tesla holdings earlier in the year, citing concerns over the impact of Musk’s political comments.