Trump administration warns of cutting government deals with Musk's companies

Tension between U.S. President Donald Trump and billionaire Elon Musk has reached a peak. According to BBC, the earlier friendship between the world’s most powerful leader and the wealthy businessman has now ended.

Elon Musk has been actively lobbying for over a week against a new spending bill signed by President Trump. During a recent meeting with the German Chancellor, Trump reportedly expressed his disappointment with Musk.

Due to this conflict, the Trump administration has warned that it may cut government contracts with Musk’s companies. Following the tension, the stock price of Musk’s company Tesla has dropped by 14%.

The dispute began last week after Musk officially resigned from his government role. He had been working for nearly four and a half months in Trump’s Department of Government Efficiency (DOGE), which focuses on reducing government spending.