Trump-Musk Dispute Deepens as President Questions Subsidies, Musk Threatens Political Challenge

U.S. President Donald Trump on Tuesday expressed skepticism over the government subsidies received by Elon Musk and his companies, saying Musk “would probably have to close up shop and head back home to South Africa” without them. The remarks marked the latest development in the escalating dispute between the two.
In a post on Truth Social, Trump said Musk was aware of his opposition to the electric vehicle mandate, describing it as unreasonable and a central part of his campaign, and stating that electric cars should not be mandatory for everyone.
Trump also said, “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
He added that without government support, there would be no more rocket launches, satellites, or electric car production, and claimed, “Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!”
Earlier, Trump described his signature tax and spending bill as “perhaps the greatest and most important of its kind in history,” saying it would deliver record tax cuts, border security, job growth, and military funding, while warning that failure to pass it would lead to “a whopping 68% tax increase, the largest in history.”
Speaking to reporters today at the White House, when asked about deporting Musk, who is a U.S. citizen, Trump replied, "I don’t know, we’ll have to take a look."
Meanwhile, Musk posted on X that if “this insane spending bill” passes, “the America Party will be formed the next day,” arguing that the country needs an alternative to the “Democrat-Republican uniparty so that the people actually have a VOICE.”
After the Senate narrowly advanced Trump’s bill over the weekend, Musk renewed his criticism, stating he plans to launch primary challenges against Republicans in Congress who supported what he described as a massive domestic policy agenda. He also warned that the bill would undermine his DOGE initiative, which he says is aimed at reducing what he views as wasteful government spending.
The once-close relationship between Trump and Musk has turned into a public feud in recent weeks, beginning after Trump expressed “surprise and disappointment” over Musk’s opposition to the bill. Trump previously said he and Musk “had a great relationship” but added, “I don’t know if we will anymore.” Musk, who resigned as head of the Department of Government Efficiency, responded on X, accusing Trump of ingratitude and claiming the president would have lost the 2024 election without his financial and logistical support, citing $290 million in donations and organizing efforts in key swing states.
Trump at the time also threatened to revoke government contracts for Tesla and to terminate EV tax credits that had benefited Musk’s companies.
01/07/2025