Shares of Tesla Inc. plunged more than 7% today after President Trump again targeted his former ally and the world’s richest man, Elon Musk.
The bluster between the two men reached new heights in the ongoing spat, with Musk doubling down on his criticism of the president’s flagship spending bill. Trump (pictured) threatened to go after Musk’s company through the Department of Government Efficiency, or DOGE, which Musk himself had been a major part of until he left in May. Musk’s companies, SpaceX and Starlink, are both heavily reliant on government subsidies.
“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,” Trump said in a post on Truth Social. “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!!!”
The turnaround in the relationship has been astounding. Musk had spent around $250 million in helping to get Trump elected, once claiming on X to love Trump “as much as a straight man can love another man.”
In late May, Musk stepped down from DOGE and became a critic of Trump’s “big, beautiful bill,” claiming his opposition to it was because it would increase the budget deficit. Another scenario is Musk’s fear that the bill will remove electric vehicle tax credits, which would significantly hurt Tesla.
The furor later took on hysterical proportions as Musk suggested Trump’s name appears in files connected to the late sex offender Jeffrey Epstein, although he later walked back that accusation. He also floated the idea of forming another political party in the U.S.
The intensity of the spat increased again after Musk fired off another round of criticism today. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” he wrote on X. “And they will lose their primary next year if it is the last thing I do on this Earth.” He talked again about a new political party, one that “cares about the people,” which he said would be called the “America Party.”
Musk stands to lose about $38 billion if Trump cancels government contracts with Musk’s firms, although that outcome is highly unlikely. It’s believed the EV tax credit could cost Tesla $1.2 billion a year, and it could lose an additional $2 billion through the loss of regulatory credit sales.
“He’s upset that he’s losing his EV mandate,” Trump said to reporters outside the White House this morning. “He could lose a lot more than that, I can tell you right now. Elon could lose a lot more than that.” When asked if he’d consider deporting Musk, he replied, “I don’t know, we’ll have to take a look.”
“So tempting to escalate this,” Musk responded on X. “So, so tempting. But I will refrain for now.”
Photo: Gage Skidmore/Flickr
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