Trump-Musk Rift Widens, President Threatens no Tesla and SpaceX Support

President Donald Trump on Tuesday threatened to cut off the billions of dollars in subsidies that Elon Musk’s companies receive from the federal government. The move is an escalation of the war of words between the president and the world’s richest man, one-time allies who have since fallen out.

According to a Reuters report, the feud reignited on Monday when Musk, who spent hundreds of millions on Trump’s re-election, renewed his criticism of Trump’s tax-cut and spending bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla, the leading EV maker. That bill passed the Senate by a narrow margin midday Tuesday.

The Tesla CEO renewed threats to start a new political party and spend money to unseat lawmakers who support the tax bill, despite campaigning on limiting government spending. Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.

“He’s upset that he’s losing his EV mandate and … he’s very upset about things but he can lose a lot more than that,” Reuters quoted Trump as telling reporters at the White House on Tuesday.

Trump on Truth Social on Tuesday suggested Musk might receive more subsidies “than any human being in history, by far,” adding: “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”

Though Musk has often said government subsidies should be eliminated, Tesla has historically benefited from billions of dollars in tax credits and other policy benefits because of its business in clean transportation and renewable energy.

The Trump administration has control over many of those programs, some of which are targeted in the tax bill, including a $7,500 consumer tax credit that has made buying or leasing EVs more attractive for consumers. Tesla shares dropped more than 5% Tuesday.

Treasury Secretary Scott Bessent pushed back on Musk’s criticism that the bill would balloon the deficit, saying, “I’ll take care of” the country’s finances.

Musk spearheaded the Department of Government Efficiency (DOGE), aimed at cutting government spending, before he pulled back his involvement in late May.