#TrumpVsMusk **Trump vs. Musk Feud Escalates: Subsidy Threats and Political Fallout**

*July 2, 2025*

The public feud between former allies **Donald Trump** and **Elon Musk** has reached new heights, sparking market turmoil and political upheaval. Here’s the latest:

### **1. Trump Targets Musk’s Subsidies**

President Trump threatened to review federal subsidies for Musk-owned companies like **Tesla** and **SpaceX**, accusing the billionaire of relying excessively on government support. In a Truth Social post, Trump claimed cutting these subsidies would save the U.S. a "fortune" and suggested Musk might "close up shop and head back to South Africa" without them . Tesla’s stock plunged **6%** following the remarks .

### **2. Musk Fights Back Over "Insane" Spending Bill**

Musk has aggressively opposed Trump’s **$4 trillion "Big Beautiful Bill"**, calling it "utterly insane" for ballooning the national debt. He vowed to fund primary challenges against GOP lawmakers who support it and even floated creating a new **"America Party"** to counter both Democrats and Republicans .

### **3. Political Repercussions**

- A pro-Trump **super PAC (FSD PAC)** launched to counter Musk’s influence in the 2026 midterms .

- Trump allies warn Musk’s criticism could jeopardize **Tesla’s regulatory approvals** (e.g., robotaxis) and **SpaceX’s $22B in federal contracts** .

- Musk, once a major Trump donor ($300M in 2024), now labels the GOP a "uniparty" .

### **4. Market Impact**

Beyond Tesla’s drop, the tech-heavy **Nasdaq fell 1%**, reflecting investor anxiety over the clash . Analysts warn the feud could disrupt clean energy and space sectors .

### **What’s Next?**

With Trump’s bill nearing final passage and Musk doubling down, the battle could reshape U.S. politics and tech policy. Stay tuned for updates.

*— Follow #TrumpVsMusk for real-time developments.*

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