Washington, DC (BN24) – U.S. President Donald Trump on Tuesday called on the federal Department of Government Efficiency (DOGE) to scrutinize subsidies received by Elon Musk’s companies, suggesting the move could save taxpayers billions.
The comments came as the bitter clash between Trump and Musk escalated, following the tech billionaire’s renewed attacks on Trump’s sweeping tax-cut and spending bill.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote on Truth Social. “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!!!”
Musk quickly fired back on X: “I am literally saying CUT IT ALL. Now.”
The rift underscores how quickly their once-strong alliance has unraveled. Musk spent nearly $300 million backing Trump’s reelection campaign and was appointed to lead DOGE, Trump’s high-profile initiative to slash federal waste and streamline government spending. But the two have turned on each other over the fiscal impact of the tax-and-spending package, which independent analysts estimate will add $3 trillion to the national debt.
Musk argues the legislation undermines the savings achieved by DOGE and betrays Republican promises to rein in deficits. Over the weekend, he called the bill “utterly insane and destructive,” and on Monday escalated his criticism further:
“Lawmakers who campaigned on cutting spending but backed this should hang their heads in shame!” he wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.”
He also renewed his call for a new political movement, mocking the current system as “the PORKY PIG PARTY!!”
Trump’s latest salvo threatened to hit Musk’s sprawling business empire, including electric vehicle maker Tesla and rocket firm SpaceX. The latter has approximately $22 billion in government contracts through SpaceX and its satellite division Starlink.
Musk’s companies have received substantial government support over the years, from electric vehicle tax credits and renewable energy incentives to lucrative federal contracts. Analysts say unwinding those relationships would be complicated and potentially disruptive to U.S. infrastructure and defense.
The feud has already rattled financial markets. Tesla shares plunged 5% in Frankfurt trading Tuesday, and the company briefly lost $150 billion in market capitalization during the height of the dispute earlier this month before recovering.
Republican strategists are increasingly concerned that the high-profile clash could fracture the party and undermine its prospects heading into the 2026 midterm elections.
Despite Musk’s fiery rhetoric, it remains unclear whether his criticism or calls for primary challenges will have any impact on the bill’s fate in Congress. But the spectacle has spotlighted the uneasy alliance between a president who champions big spending and a billionaire who built his reputation—and part of his fortune—on government contracts while now demanding the end of subsidies for everyone, including himself.
