Trump accepts Musk's apology, halts threats against SpaceX and Tesla contracts

Published: 2025-06-11 16:41:07 ET TSLA

Published on 06/11/2025 at 16:41

Washington, Jun 11 (EFE).- United States President Donald Trump has accepted Elon Musk's public apology after a heated dispute between the two former allies, the White House confirmed Wednesday, adding that no government contracts with Musk's companies have been suspended.

President Donald Trump and tycoon Elon Musk held a phone call Monday night that served to iron out tensions between the two, US media reported Wednesday.

"The president acknowledges and appreciates Elon's statement this morning. We remain focused on the American people's priorities," said White House Press Secretary Karoline Leavitt at a briefing.

Her comments followed a late-night post by Musk on his social media platform X, where he expressed regret over recent attacks on Trump.

"I regret some of my posts about President Donald Trump last week. They went too far," wrote the tech billionaire, who until recently was a major backer of the Trump administration.

No federal contracts suspended amid fallout

Despite Trump's earlier threats to cancel contracts with SpaceX and Tesla, Leavitt confirmed that "no reviews or cancellations have been made" regarding Musk's government business.

Musk's companies currently hold nearly 100 federal contracts with agencies including NASA and the Department of Defense, valued at over 3 billion dollars, according to The New York Times.

Musk's apology appears to have calmed tensions that began last week when he abruptly resigned from his role leading the Department of Government Efficiency (DOGE), a controversial Trump initiative focused on reducing public spending.

The fallout escalated rapidly. Musk criticized Trump's tax plan, calling it "disastrous," and posted a now-deleted message accusing the president of appearing on Jeffrey Epstein's list of associates.

The claim triggered a storm of backlash and prompted Trump to retaliate by threatening to sever all government ties with Musk's ventures.

The public feud has also had a major financial impact. According to JP Morgan, Tesla could lose $1.2 billion in annual revenue if Trump's fiscal bill passes. The electric carmaker has already lost $152 billion in market value, falling 14% on Wall Street this week.

Until their fallout, Musk and Trump were close collaborators. The entrepreneur donated 250 million dollars to Trump's re-election campaign and frequently defended the administration's policies. Trump had publicly referred to Musk as a "friend."

However, Musk's exit from DOGE and the subsequent social media tirades marked a turning point in their relationship.

Musk even hinted at dismantling NASA's Dragon spacecraft, a project powered by SpaceX, before deleting that message too.

While Trump has said he plans to "stay silent" for now, the long-term status of their alliance remains unclear. For now, no punitive action has been taken, a move that could signal a willingness to de-escalate tensions. EFE