Elon Musk and Donald Trump’s Feud Heats Up Again Over Government Spending and Subsidies
In a whirlwind of back-and-forth on social media, former President Donald Trump threw fresh shade at Elon Musk’s empire on Tuesday. Trump suggested that the government’s efficiency watchdog—playfully nicknamed DOGE—should take a closer look at the subsidies Musk’s companies receive. The goal? To save taxpayers some serious cash.
Trump’s Bold Claim on Musk’s Subsidies
Trump didn’t hold back. Posting on his own platform, Truth Social, he fired off a message that grabbed attention:
“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!!!”
It’s a classic Trump-style tweet, combining a jab with a call for fiscal responsibility, and throwing in a little humor by naming the Department of Government Efficiency as DOGE — a nod to the popular Dogecoin meme coin that Musk famously supports.
Musk’s Quick Comeback: “Cut It All, Now.”
Not one to stay silent, Musk hit back immediately on X (formerly Twitter), saying, “I am literally saying CUT IT ALL. Now.”
That’s right — Musk wants every subsidy chopped. This bold statement marks an unusual position for the tech billionaire who has long benefited from government contracts and incentives, especially for his space and electric car ventures.
The History Behind the Clash
This latest flare-up is just the newest episode in an ongoing feud that started back in early June. At that time, Trump threatened to slash Musk’s subsidies and government contracts after Musk publicly slammed Trump’s sweeping tax-cut and spending bill.
Non-partisan analysts have pointed out that the bill would add nearly $3 trillion to the U.S. national debt. Musk’s outspoken criticism and Trump’s response turned their relationship sour — from friendly allies to fierce opponents battling on social media.
Why the Focus on Musk?
Elon Musk’s business empire is massive. SpaceX, his rocket company, holds about $22 billion in federal contracts, including its satellite division Starlink. Tesla, his electric car giant, has also benefited indirectly from various government incentives over the years.
Trump’s claim suggests that Musk’s companies are heavily reliant on government support. Without those subsidies, Trump argues, Musk’s operations might not be sustainable, which would ironically save taxpayers “a fortune.”
Tesla’s Stock Takes a Hit Amid Drama
The public feud hasn’t been kind to Tesla’s stock. On June 5, the electric car company experienced the largest single-day drop in its history, losing roughly $150 billion in market value — a staggering number.
Though the stock has rebounded since then, Tesla shares faced another drop, tumbling 5% in Frankfurt on Tuesday following the ongoing drama.
Musk’s Renewed Criticism of the Spending Bill
After a few weeks of mostly laying low, Musk jumped back into the fray on Saturday as the Senate debated the bill. He called the legislation “utterly insane and destructive.”
On Monday, Musk ramped up the pressure by slamming lawmakers who campaigned on cutting government spending but ended up backing the bill anyway. He said they “should hang their heads in shame!”
A Vow to Unseat Lawmakers
Musk didn’t stop at words. He vowed to make those lawmakers pay politically: “And they will lose their primary next year if it is the last thing I do on this Earth.” That’s some serious determination, coming from a man known for shaking up politics and business alike.
He even suggested forming a new political party, branding the current state of affairs as dominated by the “PORKY PIG PARTY!!” — a clever, biting nickname referencing the massive spending increases.
A Surprising Shift from Ally to Adversary
Musk’s fierce opposition to this bill marks a dramatic change from his previous stance. Not too long ago, he donated nearly $300 million to Trump’s re-election campaign and championed the Trump administration’s controversial DOGE cost-cutting initiative.
Now, however, he argues the bill would balloon the national debt and wipe out the savings his own efforts allegedly produced.
Political Fallout and Uncertainty
How much influence Musk actually holds over Congress is still unclear. While he’s a major player in tech and business, translating that into political power isn’t straightforward.
Some Republicans worry Musk’s back-and-forth with Trump could backfire, potentially harming GOP chances to keep control of Congress in the 2026 midterm elections.
Still, Musk’s vocal stance is shaking up the conversation on government spending and corporate subsidies — a topic that often sparks heated debate.
Key Takeaways:
-
Trump accuses Musk of benefiting excessively from government subsidies, suggesting cutting them could save taxpayers huge sums.
-
Musk responds by calling to cut all subsidies immediately.
-
The feud between the two reignited over a $3 trillion tax-cut and spending bill, which both have criticized.
-
Tesla and SpaceX heavily rely on government contracts and incentives.
-
Tesla’s stock experienced historic volatility amid the clash.
-
Musk vows to politically challenge lawmakers supporting the bill.
-
Musk proposes a new political party due to what he sees as rampant government pork spending.
-
The conflict underscores ongoing debates about government spending, subsidies, and fiscal responsibility.
Login