Trump Threatens Elon Musk
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Donald Trump told Elon Musk to expect very serious consequences if he funds political candidates that Trump opposes. Now, this threat didn't come through a leak or some sort of back-channel message. It came directly from the president himself during a phone interview with NBC's Kristen Welker. Now, that message followed a series of public jabs between the two men, revealing a larger question. What happens when the president, Donald Trump,

threatens to retaliate against a private citizen for political donations. Trump's threat wasn't vague, though. In a Thursday post, he suggested cutting off federal contracts and subsidies to Musk's companies as a budget-saving measure. That post followed Musk's public criticism of the GOP's latest budget legislation and his call to vote out incumbents in 2026.

Elon also floated the idea of launching a new political party to represent the 80% in the middle. Trump responded within days, warning that if Musk backs Democratic candidates in the midterms, he'll suffer unspecified consequences. Now, the president didn't explain what those would be, but insisted they'd be very serious.

Now, Musk donated at least $288 million to support Trump and other Republicans during the 2024 election cycle, according to campaign finance reports. That sum made him the most influential financial backer in GOP circles last year. Now, his abrupt threat to redirect support away from the party or possibly fund third party or Democratic candidates has triggered Donald Trump's escalated warnings. Now, the message that Donald Trump is sending is...

is that loyalty is transactional and switching sides comes with penalties. Trump's tactics have created unease even among some of his political allies. Federal subsidies have played a major role in sustaining Musk's company. SpaceX receives billions through NASA contracts and Tesla benefits from energy credits and tax incentives tied to its EVs.

Cutting those off would have tangible effects on operations, investors, and jobs. The threat was targeted directly at Elon Musk and his finances and his businesses. In private discussions with donors, Trump has emphasized his preference for transactional politics. Sources familiar with the situation say that Trump views financial loyalty as a cornerstone of his political machine.

That makes Musk's dissent unusually dangerous in Trump's view. Musk, who once boasted of being a free speech absolutist, has found himself caught between asserting political independence and preserving access to government resources for him and also his companies. Now, the dynamic matters to everybody, but

Beyond personal grudges, tech CEOs and federal officials are always navigating a new era of policy influence right now, where access and funding increasingly depend on personal relationships rather than traditional lobbying or merit. It looks like handshake deals are happening throughout Trump's administration. Musk had enjoyed a period of influence under Trump

including friendly meetings and favorable public comments, staying at Trump's estates. Now that influence is completely gone. It's evaporated. Other tech leaders see this as an opportunity to fill the void, though. Executives at companies like Palantir and Endreal, both heavily defense-focused, see a pathway to gain favor with the administration.

Industry sources say these firms are already increasing the federal lobbying efforts, giving more and more money and positioning themselves as alternative to Elon Musk. Now, Meta's leadership has also shifted its political tone.

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Aligning more closely with Trump's rhetoric in recent months, Musk's misstep could create room for new favorites of Trump to emerge. Musk's standing in Silicon Valley had already begun to erode due to his erratic public statements and inconsistent business focuses recently. And while respected for engineering successes and managing Tesla and SpaceX, he has frustrated partners and investors with unpredictable behavior and unkept promises.

And losing Trump's favor could further isolate him, especially if his corporate empire becomes a target of scrutiny for Trump's administration. One consequence of this feud is a potential change in U.S. space policy. SpaceX currently dominates government satellite launches and space logistics. If federal agencies begin to shift contracts toward Blue Origin, who's Jeff Bezos' space venture, it could benefit handsomely.

Sources familiar with NASA's current contract review process say the agency is exploring ways to diversify launch providers in light of political risks associated with single-vendor dependency such as SpaceX. OpenAI, who, of course, Elon has been warring with for a while, Sam Altman stands to benefit from the political fallout as well.

Although Altman has his own ongoing feud with Elon Musk, he has navigated the post-election power structure with more discretion. He repurposed a large-scale data center initiative as a federal infrastructure project and secured a White House photo op shortly after Trump's inauguration. His strategy earned him credibility inside the administration without attracting Musk-style controversy. Now,

The silence from other tech leaders speaks volumes here. Most prefer to avoid choosing sides in a political feud that could affect federal contracts, antitrust actions, or export licenses. Many executives are quietly hopeful that Musk's departure from Trump's inner circle will ease policy negotiations and create a more predictable business environment for their companies.

Now the administration's treatment of Musk reveals how Trump views power and loyalty, sees wealth and influence as useful tools when they serve his political goals and as liabilities when they don't serve him anymore. Musk helped fuel the Republican campaign in 2024, but in 2026, that might not be enough to shield him from Donald Trump's retribution. Trump's message is very blunt. You can fund the opposition, but

It will cost you.

And please take care of yourselves and each other. And I'll see you tomorrow.