President Donald Trump on June 5 floated the idea of canceling Tesla and SpaceX CEO Elon Musk’s government contracts as a feud between the two over the size of a bill recently passed by Congress intensifies.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote in a post on Truth Social. “I was always surprised that Biden didn’t do it!”

The comments were made as a feud between the two former allies escalates.

Meanwhile, Musk suggested that there should be a third political party in the United States.

“Is it time to create a new political party in America that actually represents the 80% in the middle?” he wrote in a social media post.

He also declared that SpaceX would begin “decommissioning its Dragon spacecraft immediately” in response to Trump's threat.

Both Tesla and Trump Media and Technology Group Corp shares tumbled during as the feud escalated.

Tesla plunged 14.27% at $284.68 on Thursday, while Trump Media and Technology Group Corp dropped almost 8.04% to $20.12.