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Trump Urges Review of Elon Musk’s Federal Subsidies Amid Escalating Feud Over Spending Bill
Trump reignites feud with Elon Musk, calls for review of Tesla & SpaceX subsidies. Musk fires back: “CUT IT ALL.” Tesla stock plunges as political tension threatens robotaxi dreams.
ND
by News Desk
2025-07-01
Trump Urges Review of Elon Musk’s Federal Subsidies Amid Escalating Feud Over Spending Bill

U.S. President Donald Trump on Tuesday called for a review of federal subsidies to Elon Musk’s companies, suggesting the Department of Government Efficiency (DOGE) investigate the billions of dollars in government support received by Tesla and SpaceX. The comments reignite a growing political and personal feud between the president and the world’s richest man.

The remarks come in response to Musk’s sharp criticism of the new tax-cut and spending bill, which he called “utterly insane and destructive.” Musk, a major Republican donor, accused GOP lawmakers of betraying fiscal conservatism and pledged to unseat them in future primaries. His attacks gained traction just as the Senate deliberated on the controversial bill.

“Elon may get more subsidy than any human being in history,” Trump wrote on Truth Social, adding, “Without subsidies, Elon would probably have to close up shop and head back home to South Africa… Perhaps we should have DOGE take a good, hard look at this?”

Musk responded bluntly on X (formerly Twitter):

“I am literally saying CUT IT ALL. Now.”

The rift rattled markets, sending Tesla shares down more than 6% in pre-market trading. Investors fear the feud may lead to regulatory hurdles, especially for Tesla’s robotaxi program, which relies heavily on approvals from the U.S. Transportation Department.

Trump warned Musk that his companies could “lose a lot more” than tax breaks, citing Tesla’s loss of the EV mandate under the new law and hinting at possible federal contract cuts. SpaceX currently holds an estimated $22 billion in government contracts.

The feud also prompted a rare statement from Treasury Secretary Scott Bessent, who dismissed Musk’s deficit concerns, saying, “I’ll take care of the country’s finances.”

This isn’t the first clash between the two figures. In June, Trump threatened to cut Musk’s contracts, causing Tesla to briefly lose $150 billion in market value. Musk later walked back some remarks, admitting he had gone “too far.”

But tensions reignited after Musk resumed attacks over the weekend, lambasting Republicans who supported the bill:

“They should hang their heads in shame. And they will lose their primary next year if it’s the last thing I do on this Earth!”

He also floated the idea of a new political party, branding the current bipartisan system as the “PORKY PIG PARTY.”

Trump’s allies argue Musk’s growing opposition could hurt Republican efforts in the 2026 midterms, while financial analysts warn that Tesla’s dependence on government incentives could expose the company to major financial risks if the feud worsens.

“Musk needs Trump. Trump does not need Musk,” said Dennis Dick of Stock Trader Network.
“Losing U.S. subsidies could be devastating for Tesla’s U.S. market.”

Adding to concerns, Tesla’s sales in Sweden and Denmark dropped for the sixth consecutive month in June, and analysts expect disappointing Q2 delivery numbers on Wednesday.

The feud underscores a complex power struggle between political and tech elites—and its consequences are already being felt in the market and beyond.

 
Tagged:

SpaceX

tesla

USPolitics

TrumpVsMusk

EVSubsidies
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