Trump, Musk feud reignites as Senate passes big tax-cut Bill
US President Donald Trump on Tuesday threatened to cut off the billions of dollars in subsidies that Elon Musk’s companies receive from the federal government, in an escalation of the war of words between the president and the world’s richest man, one-time allies who have since fallen out.
The feud reignited on Monday when Musk, who spent hundreds of millions on Trump’s re-election, renewed his criticism of Trump’s tax-cut and spending Bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla, the leading US EV maker.
“He’s upset that he’s losing his EV mandate and … he’s very upset about things but he can lose a lot more than that,” Trump told reporters at the White House on Tuesday.
Musk’s businesses, especially Tesla and SpaceX, are highly dependent on an array of federal contracts, policies, subsidies and credits that have provided the companies tens of billions of dollars in revenue over the years. Some of these benefits for Tesla, including consumer tax credits for EV purchases, were already on the chopping block in Trump’s tax bill. Tesla shares dropped nearly 5% in midday trading Tuesday.
The Tesla CEO renewed threats to start a new political party and spend money to unseat lawmakers who support the tax bill, despite campaigning on limiting government spending. Later in the day, the Senate narrowly passed the Bill after three Republicans voted no.
Now, the Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
Treasury Secretary Scott Bessent pushed back on Musk’s criticism that the Bill would balloon the deficit, saying, “I’ll take care of” the country’s finances.
Musk spearheaded the Department of Government Efficiency (DOGE), aimed at cutting government spending, before he pulled back his involvement in late May. Trump on Truth Social on Tuesday suggested Musk might receive more subsidies “than any human being in history, by far,” adding: “No more rocket launches, satellites, or EV production, and our country would save a fortune.”
Trump later doubled down, telling reporters with a smile, “DOGE is the monster that might have to go back and eat Elon.”
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