Trump Threatens to Cut Off Elon Musk’s Subsidies Amid Explosive Feud Over “Big, Beautiful Bill”
President Donald Trump intensified his quarrel with Tesla and the CEO of SpaceX, Elon Musk, threatening to go beyond his government subsidies while Musk degenerates his opposition to the president’s tax and expenses – was tabled by Trump as “a major bill.”
The dispute has now become one of the most dramatic public repercussions between an in -office president and a technological framework that once made his largest donors.
In an inflamed article on Truth Social, Trump said that Musk “could get more subsidy than any human being in history, by far” and without the support of the United States government, “Elon should probably close his shop and return home to South Africa.” He also suggested that the Ministry of Government Effectiveness (DOGE) – an agency originally proposed by Musk during the Trump campaign – could now be responsible for scruting federal funding for Musk companies.
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“Big money to save !!!” Trump wrote, targeting subsidies for electric vehicles, rockets and satellites, a large part of which takes place towards Tesla and SpaceX through tax credits, government contracts and emission exchange regimes.
Fallout on the “big and beautiful invoice”
The relationship between Trump and Musk took a bright turn earlier this month when the president’s tax package, presented as an cornerstone of his economic program in the second mandate, included provisions to reduce the consumer consumer tax credit of $ 7,500 EV and relax other climate-related subsidies. The bill was to increase the debt burden of the United States by an additional $ 3.3 billion, arousing Musk’s anger which led DOGE to reduce surplus government expenses and reduce the debt burden to the most to support.
While the initial quarrel was moderate, Musk’s response broke out during the weekend in a total assault against the bill – and on the republican legislators who support it.
In a scathing article on Monday afternoon, Musk wrote on X: “Each member of the congress who campaigned to reduce public spending, then immediately voted for the greatest increase in the debt in history should suspend shame. And they will lose their primary next year if this is the last thing I do on this earth. ”
The position intervened a few hours before the Senate voted on the final version of the legislation, reporting to date the most direct threat of Musk: to use its influence and its resources to target republican operators in the primary races if they support the Trump budgetary agenda.
The billionaire’s comments mark a net reversal of its previous position. After being committed to reducing political gifts, Musk now seems ready to release his considerable personal fortune to reshape the ranks of the Republican Party – potentially funding the challenges against the legislators who rank on Trump’s side on the expense bill.
Tesla’s stock takes a hit
Tesla’s shares dropped up to 5.7% at the start of negotiation on Tuesday, continuing a volatile section for the electric vehicle manufacturer. The company has already dropped by 14% on June 5, Musk’s day and Trump’s first public spit against the tax bill. JPMorgan Chase analysts have warned that Trump’s declines and reductions in green energy incentives could compromise up to 40% of Tesla’s profits, which are strongly based on consumer grants and the sale of regulatory credits.
Tesla and Panasonic Holdings Corp., its battery partner, are also the main beneficiaries of tax credits on the manufacture of inflation reduction, another element potentially threatened with the invoice aligned by Trump.
SpaceX is also in danger. The company has billions of government contracts with NASA, Pentagon and federal agencies for rocket launches and satellite services. If Doge is activated to audit government spending, this could create a direct channel to brake or reassess the financing of Musk ventures.
Trump, stung by Musk’s editing attacks, reminded the public that he has long opposed Federal Mandates EV and green energy targets, whatever his previous camaraderie with Musk.
“Elon Musk knew, long before he taught me so strongly for the president, that I was firmly against the EV mandate,” wrote Trump. “Electric cars are fine, but not everyone should have one.”
The tone is far from 2022 and early 2023, when Musk and Trump exchanged praise and Musk supported the economic management of the GOP. Their rift now highlights deeper ideological divisions on industrial policy, public spending and climate strategy, even among the allies.
In the middle of this backdrop, Tesla is preparing to publish its delivery numbers in the second quarter later this week. Analysts expect approximately 390,600 vehicle sales worldwide, which would reflect a 12% drop from one year to the next and follow a drop of 13% in the first quarter – a disturbing trend while the EV market cools under an uncertainty of subsidies.
This slowdown, combined with regulatory pressure and a cooling relationship with Washington, places musk in a particularly vulnerable position – it seems ready to counter with political force.
Musk’s attack on the “Big and Beautiful Bill” has now become a broader campaign against what he calls tax hypocrisy inside the GOP. While Trump’s base remains firm, the quarrel of “Big Beautiful Bill” should collapse through the Republican primary season and disrupt the agenda of clean energy.
