US President Donald Trump has publicly slammed Elon Musk, accusing him of being heavily reliant on government subsidies for his companies, including Tesla and SpaceX. Trump claimed that without these federal subsidies, Musk would likely have to shut down his operations and "head back home to South Africa"—Musk's country of origin. He emphasized that Musk receives more subsidies than any individual in history and suggested that cutting these subsidies could save the US government a significant amount of money.
Trump specifically criticized the electric vehicle (EV) mandate, which he opposes and which Musk has benefited from, calling it "ridiculous" and a major part of his presidential campaign platform. Trump argued that while electric cars may suit some consumers, it is wrong to force all Americans to buy them.
In a post on his social media platform Truth Social, Trump urged his Department of Government Efficiency (DOGE) to conduct a thorough review of the subsidies given to Musk's companies, implying that ending them would halt Musk’s rocket launches, satellite projects, and electric car production, thereby saving a "FORTUNE" for the country.
This public spat follows Musk's recent criticism of Trump's "Big, Beautiful Bill," a major spending and tax-cut legislation, which Musk says will increase the national debt and undermine his efforts to reduce government spending. Musk even threatened to launch a new political party, the "America Party," if the bill passes.
Musk responded to Trump's subsidy threats by stating on X (formerly Twitter), "I am literally saying CUT IT ALL. Now."
This escalating feud highlights a sharp break in the previously close relationship between Trump and Musk, with significant implications for Musk’s companies, which rely heavily on federal contracts and subsidies, including billions from NASA for SpaceX’s space missions.
