Trump-Musk Feud Reignites As US President Threatens To Cut Subsidies For Tesla, SpaceX

The feud between US President Donald Trump and tech billionaire Elon Musk has widened as the former has threatened to cut off the billions of dollars in subsidies to Musk's companies. 

Once allies, the relations between Trump and Musk turned sour late in May after the latter pulled back his involvement from the Trump administration. 

The feud reignited on Monday when Musk reiterated his criticism of Trump's tax-cut and spending bill, which would end subsidies for electric vehicle purchases that have benefited Tesla, the leading US EV maker. The bill was passed by the Senate with a narrow margin on Tuesday. 

'Musk Is Upset...'

Launching a sharp attack at Musk, Trump said, "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." 

While Musk has advocated for discontinuing subsidies, Tesla has historically benefited from billions of dollars in tax credits and other policy benefits because of its business in clean transportation and renewable energy. 

Many of these programmes are governed by the Trump administration, some of which have been targeted in the tax bill, including a $7,500 consumer tax credit that has made buying or leasing EVs more attractive for consumers. 

Tesla suffered the fallout of the feud as its shares tanked over 5 per cent on Tuesday.

Musk renewed threats to float a new political party and spend money to oust lawmakers who support the tax bill, despite his campaign on limiting government spending. 

Republicans raised concerns that Musk's on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. 

Trump-Musk Feud

The Trump-Musk alliance ended after Musk, who headed the Department of Government Efficiency (DOGE), withdrew his involvement from the Trump administration in late May. The DOGE was aimed at cutting government spending. 

On Tuesday, Trump suggested that Musk might receive more subsidies "than any human being in history, by far," adding: "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE."

"DOGE is the monster that might have to go back and eat Elon," he later told reporters with a smile. 

Responding to Trump's threats, Musk said on X, "I am saying CUT IT ALL. Now." He later added that he could escalate the exchange with Trump but said, "I will refrain for now."

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