- Trump threatened to cut Musk’s subsidies, calling for DOGE to investigate his government ties.
- Musk fired back, slamming Trump’s spending bill and teasing a new political party.
- Tesla stock dipped sharply amid fears the feud could lead to real economic fallout.
President Donald Trump has taken his simmering feud with Elon Musk up a notch—this time threatening to cut off billions in government support to Musk’s companies. In a late-night post on Truth Social, Trump hinted that the Department of Government Efficiency (DOGE) might be directed to take a “hard look” at Musk’s subsidies, which he claimed are some of the largest ever given to a single individual.
“Elon may get more subsidy than any human being in history,” Trump wrote. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.” He even joked, maybe not so jokingly, that DOGE might have to “go back and eat Elon.”
A Long Fall From Allies to Enemies
Once close political allies, Musk and Trump are now clearly in open warfare. It wasn’t that long ago that Musk was helping drive efficiency efforts within the government as a special advisor. But after stepping down in May, things unraveled quickly. Trump now claims Musk is “very upset” because he’s “losing his EV mandate”—though technically, no federal EV mandate exists. Trump did, however, block California’s proposed EV sales requirement, which Musk had lobbied to preserve.
Musk didn’t respond directly to Trump’s comments but posted a series of barbed replies on X. One meme showed Pinocchio on fire with the word “LIAR,” and another threatened electoral revenge: “Lawmakers who vote for this bill will lose their primary next year if it’s the last thing I do on this Earth.”
The Tesla and SpaceX CEO also floated the idea of forming a new political party if the controversial “big, beautiful bill,” as Trump calls it, makes it through Congress. “Our country needs an alternative to the Democrat-Republican uniparty,” Musk posted.
The Spending Bill, DOGE, and Political Showdowns
At the heart of this is Trump’s massive spending bill, which Musk has repeatedly slammed as a “disgusting abomination.” The bill, which recently passed the Senate, would increase the national debt by $3.3 trillion over a decade, according to the Congressional Budget Office. It would also cut Medicaid significantly, leaving an estimated 12 million Americans without coverage.
Treasury Secretary Scott Bessent, brushing aside Musk’s criticism, told Fox News: “I admire Elon’s leadership on rockets. I will take care of the finances.”
As Trump and Musk traded barbs, DOGE—originally created as a cost-cutting agency—has suddenly become a political weapon. Trump now hints that it could be used to reevaluate Musk’s sprawling portfolio of government-backed ventures. That includes Tesla, SpaceX, and other Musk-affiliated companies that have received an estimated $38 billion in credits, contracts, and subsidies, according to The Washington Post.
Market Response & What’s Next
Markets didn’t take the spat lightly. Tesla stock dropped 6% before the bell on Tuesday. Though it’s still up from spring lows, it’s down 21% year-to-date. Investors seem worried that real consequences could follow Trump’s words—especially as Musk continues to provoke the president.
With the Senate bill heading back to the House for approval, Republicans are racing toward a July 4 deadline, but they’re facing resistance—even from within their own ranks.
For now, all eyes are on Musk and Trump, as their once-mutual admiration morphs into one of Washington’s most explosive feuds.
