The tension between President Donald Trump and Tesla CEO Elon Musk blew up again this week. Elon called out the Republican-led tax bill as a disaster and even pushed for a brand-new political party.
That same day, Trump fired back on Truth Social, saying it might be time to shut off every federal subsidy Elon’s companies get. Tesla stock dropped nearly 5% on Tuesday right after Trump’s post hit.
Elon had posted several angry messages on X (formerly Twitter), calling the bill “fiscally irresponsible” and saying he’d financially back primary challengers to Republicans who support it. He also said the government shouldn’t be handing out cash to anyone—including him.
But Trump didn’t care. He reminded reporters Tuesday morning that he still has the tools to make things hurt:
“He’s upset that he’s losing his EV mandate … but he can lose a lot more than that, I can tell you. Elon can lose a lot more than that.”
Trump targets Musk’s federal support
Late Monday night, Trump used Truth Social to tear into Elon’s empire. He wrote:
“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 home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
Elon created and briefly headed DOGE during the early months of Trump’s second term before stepping down in late May. Now, Trump says DOGE should review all of Elon’s benefits. He followed up his social media post with more comments to reporters Tuesday morning. “I think what’s going to happen is DOGE is going to look at Musk. And if DOGE looks at Musk, we’re going to save a fortune,” Trump said. “I don’t think he should be playing that game with me.”
It’s not an empty threat. Elon’s companies—Tesla, SpaceX, and Starlink—have always been tied to government partnerships, credits, and policies. SpaceX gets billions in contracts from NASA and the Pentagon. Starlink’s satellite internet services depend on regulatory green lights. Tesla still pulls in money from energy credits and federal EV programs. Losing those would put serious pressure on Elon’s business.
Musk reignites attacks and pushes for a new party
The fight restarted when Elon blasted the tax bill again on Monday. He criticized both the spending and the cuts to green energy support. “Time for a new political party that actually cares about the people,” he wrote on X. Elon says he’s ready to fund primary challengers against anyone who backs the legislation.
Elon also shared a screenshot of Trump’s post and captioned it: “I am literally saying CUT IT ALL. Now.” That included his own subsidies. He doubled down on the idea that the government shouldn’t be handing out money, period. But that doesn’t seem to have softened Trump’s stance. The president seems determined to use DOGE to dig into everything Elon touches.
The bill at the center of all this is one of Trump’s major priorities. It’s expected to slash federal support for EVs and green energy while increasing the deficit under current estimates. Elon’s not just mad about the money. He thinks the bill is bad economics and bad policy. And unlike most billionaires, he’s going public about it.
Back in 2024, Elon had joined Trump on the campaign trail. Now, less than a year later, he’s breaking ranks and threatening to reshape the political map. Between the online fights, stock crashes, and threats from the White House, this feud is no longer just about policy differences. It’s about two powerful men using every tool they’ve got to punish each other in real time.
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