You don’t want to cross Donald Trump. He will find a way to end up on top.
That’s why President Trump has threatened a former ally with heavy consequences for betraying him.
Trump Threatens Musk’s Government Contracts Amid China Ties Scrutiny
President Donald Trump has signaled potential action against Elon Musk’s lucrative federal contracts, citing the billionaire’s extensive business dealings in China as a possible vulnerability. The escalating feud between the two high-profile figures has drawn attention to Musk’s role as a major government contractor through SpaceX and his deep ties to China via Tesla.
The tension stems from Trump’s concerns about Musk’s susceptibility to foreign influence, particularly due to Tesla’s significant operations in China. “Elon has businesses in China, and he would be susceptible, perhaps, to that,” Trump said in March, addressing reports of Musk’s Pentagon briefings. The president’s remarks followed a New York Times story alleging Musk was briefed on potential war plans with China, a claim both Trump and Musk dismissed as false.
Musk’s Tesla relies heavily on China for production and sales, with its Shanghai Gigafactory producing over 950,000 vehicles annually. In 2024, Tesla reported $20.944 billion in revenue from China, a substantial portion of its global sales. Musk has frequently praised China’s economic achievements, noting in 2021, “The economic prosperity that China has achieved is truly amazing, especially in infrastructure! I encourage people to visit and see for themselves.”
The public dispute intensified over Trump’s signature legislation, dubbed the “One Big Beautiful Bill,” which passed the Senate with a 50-50 vote, Vice President JD Vance breaking the tie. Musk criticized the bill, warning it “will destroy millions of jobs in America” by ending electric vehicle mandates. Trump fired back on Truth Social, stating, “Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign.”
Trump suggested Musk’s opposition is driven by personal financial interests, adding, “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back to South Africa.” He hinted at deploying DOGE, a proposed efficiency initiative, to scrutinize Musk’s contracts, saying, “BIG MONEY TO BE SAVED!!!”
Musk responded on X, calling Trump’s argument “just plain wrong [shrug emoji]” and “so disappointing.” He argued the bill’s $5 trillion debt ceiling increase undermines fiscal responsibility, asking, “And how are we supposed to reach Mars if America goes de facto bankrupt?”
SpaceX, a cornerstone of Musk’s empire, has secured over $13 billion in NASA contracts since 2015 and billions more from the Pentagon for satellite networks like Starlink and Starshield. Reuters reported that $22 billion of SpaceX’s government contracts could be at risk if Trump follows through on his threats.
The controversy also touches on Musk’s security clearance. The New York Times reported that Musk holds a top-secret clearance, but his compliance with federal protocols has been questioned. Anonymous officials noted SpaceX’s failure to report details of Musk’s meetings with foreign leaders, prompting reviews by the Defense Department and Air Force.
Musk’s ties to China extend beyond Tesla’s factories. In 2019, he secured $521 million in loans from Chinese banks for Tesla’s Shanghai plant. The Chinese government granted Tesla a favorable 15% corporate tax rate, compared to the standard 25%. Musk has met with high-ranking Chinese officials, including Premier Li Keqiang, who called him an “old friend” in 2024.
In 2021, Musk praised China’s Five-Year Plan, saying, “What attracts me most about China’s Five-Year Plan is the tremendous amount of commitment to a low-carbon economy and ultimately to a sustainable energy economy.” Tesla’s operations in Xinjiang, a region linked to human rights concerns, also drew scrutiny after a 2021 post celebrated a new showroom there.
Musk’s social media activity has amplified his pro-China stance. He tweeted last month, “The fundamental challenge is that China has almost 4 times the population of the US and their GDP per capita is trending to roughly approximate that of the US.” He also predicted China’s solar power capacity would surpass all U.S. electricity sources combined within years.
The feud has raised questions about Musk’s influence within the Republican Party. When asked if Musk’s wealth could sway GOP lawmakers, Trump replied, “No, I don’t think so,” emphasizing DOGE’s potential to save billions by reviewing Musk’s contracts.
Musk’s Pentagon engagements have also sparked debate. Defense Secretary Pete Hegseth clarified that Musk’s March visit was about “innovation, efficiencies & smarter production,” not war plans. Pentagon spokesman Sean Parnell called Musk “a patriot,” dismissing media reports as “100% Fake News.”
Despite Musk’s contributions to U.S. space and defense capabilities, Trump’s focus on his China ties persists. The president reiterated concerns in an Oval Office briefing, stating, “I don’t want other people seeing — anybody seeing — potential [plans for] war with China.” He emphasized U.S. preparedness while questioning Musk’s divided interests.
Musk’s SpaceX remains critical to NASA and Pentagon missions, including the Artemis Moon program and Starlink’s military applications. The Washington Post reported that Musk’s companies have received at least $38 billion in government funding over the years.
The billionaire’s foreign policy comments, particularly on Taiwan, have added fuel to the fire. In 2022, Musk suggested Taiwan become a “special administrative region” of China, drawing criticism from Taiwanese officials. “Taiwan sells many products, but our freedom and democracy are not for sale,” then-Ambassador Hsiao Bi-khim tweeted.
Recent reports indicate Chinese investors have funneled money into Musk’s ventures like SpaceX and xAI through offshore hubs, raising national security concerns. A Center for Strategic and International Studies report highlighted Chinese military concerns about Starlink’s threat to China’s interests.
Musk has defended his enterprises, asserting SpaceX’s dominance in global space launches. “Tonnage to orbit is all that matters. SpaceX will probably do over 90% of all Earth mass to orbit,” he tweeted in March. He acknowledged China’s space advancements but maintained SpaceX’s superiority.
