🚨 Trump vs. Musk: U.S. Subsidy Feud Sparks Political Firestorm
In a bold escalation of tensions, U.S. President Donald Trump has publicly threatened to eliminate federal subsidies for Elon Musk’s companies — including Tesla and SpaceX — accusing the billionaire entrepreneur of being overly reliant on government support.
The feud erupted on July 1, 2025, when Trump posted a series of sharp remarks on Truth Social, alleging that Musk receives “more subsidy than any human being in history” and claiming that without this aid, Musk would “probably have to close up shop and head back home to South Africa.”
---
🔥 What Sparked the Clash?
At the center of the dispute is Trump’s signature legislative initiative — “One Big Beautiful Bill” — a sweeping spending package Musk has vocally opposed. Musk labeled it “political suicide for the Republican Party” and even threatened to launch a new political party, the “America Party,” if the bill makes it through the Senate.
Trump’s response? A full-blown attack on Musk’s federal funding pipeline — from EV incentives for Tesla to government contracts with SpaceX — and a demand for the Department of Government Efficiency (DOGE) to investigate the total volume of taxpayer dollars supporting Musk’s ventures.
---
💬 Musk Hits Back
Musk, never one to shy away from confrontation, fired back on X (formerly Twitter), stating:
> “I am literally saying CUT IT ALL. Now.”
With that, Musk appeared to welcome the removal of subsidies, challenging Trump to follow through.
🧩 What’s at Stake?
For Musk: The credibility of his free-market ethos — and the future of Tesla and SpaceX’s U.S. operations if public contracts are at risk.
For Trump: Control of the narrative around government spending, fiscal conservatism, and industrial policy.
For Markets: Investor sentiment around EVs, space exploration, and federal contract-dependent industries could see turbulence.
