Trump suggests DOGE look at subsidies for Musk’s companies to save money
US President Donald Trump suggested the government efficiency department should review the subsidies Tesla CEO Elon Musk’s companies have received in order to save money, reigniting a war of words between the world’s most powerful man and its richest.
Trump’s remarks on Tuesday came after Musk renewed his criticism of the sweeping tax-cut and spending bill, vowing to unseat lawmakers who supported it after campaigning on limiting government spending.
Tesla shares fell nearly 5% in premarket trading.
Feuding with Trump could create hurdles for Tesla and the rest of Musk’s business empire.
The US Transportation Department regulates vehicle design and would play a key role in deciding whether Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk’s rocket company SpaceX has about $22 billion in federal contracts.
“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. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,” Trump said in a post on Truth Social, referring to the federal Department of Government Efficiency (DOGE).
In response to Trump’s post, Musk, on his own social media platform X, said, “I am literally saying CUT IT ALL. Now.”
Trump previously threatened to cut Musk’s government contracts when their relationship erupted into an all-out social media brawl in early June over the bill, which non-partisan analysts have said would add about $3 trillion to the US debt.
The rift had sent Tesla shares into a free-fall, wiping out about $150 billion in market value in the company’s biggest single-day decline. The stock later rebounded after Musk walked back some of his jabs, saying he had gone “too far.”
But after weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it “utterly insane and destructive” in a post on X.
On Monday, he said lawmakers who campaigned on cutting spending but backed the bill “should hang their heads in shame!” “And they will lose their primary next year if it is the last thing I do on this Earth,” Musk added.
He also called again for a new political party, saying the bill’s massive spending indicated “that we live in a one-party country – the PORKY PIG PARTY!!”
The criticism marked a dramatic shift after the billionaire spent nearly $300 million on Trump’s re-election campaign and led the administration’s controversial DOGE initiative.
Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he achieved through DOGE.
It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill’s passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
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