Washington, July 1, 2025 — Former U.S. President Donald Trump has alleged that Elon Musk, CEO of Tesla and SpaceX, is overly dependent on federal subsidies, stating on Truth Social that without such support, “Elon would probably have to close up shop and head back home to South Africa.” Trump accused Musk of receiving “more subsidy than any human being in history” and warned that eliminating these could halt Tesla’s EV production, SpaceX rocket launches, and satellite deployments, potentially saving the U.S. “a fortune” .
Trump’s comments emerged amid growing tension over his proposed “$3.3 trillion tax and spending bill,” which includes significant reductions to electric vehicle tax credits. Musk, who has vocally criticised the legislation, has described it as “insane” and indicative of a “one-party country” dominated by debt-driven policies . In response to Trump’s assertion, Musk reportedly posted on X: “I am literally saying CUT IT ALL. Now.” .
The clash has rekindled a public feud that began earlier this year after Musk stepped down from leading Trump’s Department of Government Efficiency (DOGE) in May. Trump suggested during media comments that DOGE might launch an investigation into Musk’s federal subsidies and even hinted at possible deportation .
The feud has had tangible effects: Tesla shares dropped around 5–6% in early trading following Trump’s remarks . Analysts at Wedbush noted that while Tesla’s long-term prospects remain rated “Outperform,” the incident highlights the growing political sensitivity around cleantech subsidies amid fiscal belt-tightening .
