President Donald Trump has intensified his feud with Tesla and SpaceX CEO Elon Musk, threatening to strip his companies of government subsidies as Musk escalates his opposition to the president’s tax and spending bill—dubbed by Trump as the “One Big Beautiful Bill.”
The dispute has now grown into one of the most dramatic public fallouts between a sitting U.S. president and a tech executive who was once among his biggest backers.
In a fiery post on Truth Social, Trump declared that Musk “may get more subsidy than any human being in history, by far,” and without U.S. government support, “Elon would probably have to close up shop and head back home to South Africa.” He also suggested that the Department of Government Efficiency (DOGE)—an agency originally proposed by Musk during Trump’s campaign—could now be tasked with scrutinizing federal funding to Musk’s businesses.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
“BIG MONEY TO BE SAVED!!!” Trump wrote, targeting subsidies for electric vehicles, rockets, and satellites, much of which flow to Tesla and SpaceX through tax credits, government contracts, and emissions trading schemes.
Fallout Over the “Big, Beautiful Bill”
The relationship between Trump and Musk took a sharp turn earlier this month when the president’s tax package, pitched as a cornerstone of his second-term economic agenda, included provisions to roll back the $7,500 EV consumer tax credit and unwind other climate-related subsidies. The bill was projected to shoot up the U.S.’s debt load by an additional $3.3 billion, stirring the ire of Musk who headed DOGE to cut the government’s excess spending and trim the debt load to the barest minimum.
While the initial feud was subdued, Musk’s response erupted over the weekend into an all-out assault on the bill—and on Republican lawmakers who support it.
In a scathing post on Monday afternoon, Musk wrote on X: “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame. And they will lose their primary next year if it is the last thing I do on this Earth.”
The post came just hours before the Senate was expected to vote on the final version of the legislation, signaling Musk’s most direct threat yet: to use his influence and resources to target Republican incumbents in primary races if they back Trump’s fiscal agenda.
The billionaire’s comments mark a sharp reversal from his earlier stance. After pledging to cut back on political donations, Musk now appears poised to unleash his considerable personal fortune to reshape the Republican Party’s ranks—potentially funding challengers against lawmakers who side with Trump on the spending bill.
Tesla’s Stock Takes A Hit
Tesla’s stock tumbled as much as 5.7% in early trading Tuesday, continuing a volatile stretch for the EV maker. The company already fell 14% on June 5, the day of Musk and Trump’s first public spat over the tax bill. Analysts at JPMorgan Chase have warned that Trump’s proposed regulatory rollbacks and cuts to green energy incentives could jeopardize as much as 40% of Tesla’s profits, which rely heavily on consumer subsidies and the sale of regulatory credits.
Tesla and Panasonic Holdings Corp., its battery partner, are also top beneficiaries of the Inflation Reduction Act’s manufacturing tax credits, another element potentially under threat from the Trump-aligned bill.
SpaceX, too, stands at risk. The company holds billions in government contracts with NASA, the Pentagon, and federal agencies for rocket launches and satellite services. If DOGE is activated to audit government spending, it could create a direct channel to rein in or reassess funding for Musk’s ventures.
Trump, stung by Musk’s mounting attacks, has reminded the public that he has long opposed federal EV mandates and green energy targets, regardless of his earlier camaraderie with Musk.
“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,” Trump wrote. “Electric cars are fine, but not everyone should be forced to own one.”
The tone is a far cry from 2022 and early 2023, when Musk and Trump exchanged praise and Musk supported the GOP’s economic direction. Their rift now highlights deeper ideological divides on industrial policy, government spending, and climate strategy—even among allies.
Amid this backdrop, Tesla is preparing to release its second-quarter delivery numbers later this week. Analysts expect around 390,600 vehicle sales globally, which would reflect a 12% year-over-year drop and follow a 13% fall in Q1—a troubling trend as the EV market cools under subsidy uncertainty.
This downturn, combined with regulatory pressure and a cooling relationship with Washington, places Musk in a uniquely vulnerable position—one he appears ready to counter with political force.
Musk’s attack on the “Big, Beautiful Bill” has now evolved into a broader campaign against what he calls fiscal hypocrisy inside the GOP. While Trump’s base remains firm, the “Big Beautiful Bill” feud is expected to ripple across the Republican primary season and disrupt the clean energy agenda.