President Donald Trump launched a scathing critique of Elon Musk’s business empire, suggesting that without government subsidies, the tech billionaire would have to “close up shop and head back home to South Africa.” The confrontation escalated after Musk opposed Trump’s initiative to eliminate electric vehicle mandates, with Trump warning that the Department of Government Efficiency (DOGE) might need to investigate Musk’s companies. How can this ongoing feud impact Trump and Musk’s relationship?
Trump’s DOGE Warning to Musk
President Donald Trump has escalated his conflict with tech billionaire Elon Musk, warning that his Department of Government Efficiency (DOGE) might “have to eat Elon.” The president’s comments came after Musk publicly opposed Trump’s “One Big Beautiful Bill,” which aims to eliminate electric vehicle mandates across the country.
Trump didn’t mince words in his Truth Social post, stating: “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.” The president suggested that without government support, Musk’s companies—including Tesla, SpaceX, and other ventures—might not survive.
JUST IN: 🇺🇸 President Trump slams Elon Musk and threatens to cut government subsidies to his companies.
"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… pic.twitter.com/GS1zVp493n
— Watcher.Guru (@WatcherGuru) July 1, 2025
Financial Fallout and Market Response
The public feud had immediate financial consequences as Tesla shares dropped more than 4% following Trump’s comments about potential subsidy cuts. Investors reacted swiftly to the possibility that the administration might target financial support that has helped fuel the growth of Musk’s electric vehicle company.
Trump’s suggestion that DOGE should “take a good, hard look” at Musk’s subsidies signaled a potential shift in policy that could save the government “a FORTUNE.” The president further emphasized his point when speaking to reporters, saying, “He’s upset that he’s losing his EV mandate … but he can lose a lot more than that, I can tell you.”
🚨 BREAKING: President Trump slams Elon Musk, warning that government subsidies could be cut off:
“Elon may have received more subsidies than anyone in history by a wide margin. Without them, he’d likely have to shut down and head back to South Africa.
No more rocket launches,… pic.twitter.com/EIuLXacSoz
— 𝗗𝗼𝗻𝗮𝗹𝗱𝗼 𝗧𝗿𝘂𝗺𝗽ø 🇺🇲 𝗨𝗽𝗱𝗮𝘁𝗲 (@TrumpUpdateHQ) July 1, 2025
Political Divisions and Legislative Battles
The confrontation stems from deeper political disagreements over Trump’s budget reconciliation bill, which would advance his agenda on taxes and energy. Musk has aligned himself with some Republican lawmakers against the bill, arguing it would increase the debt ceiling by $5 trillion, calling it the “BIGGEST DEBT ceiling increase in HISTORY.”
In response to the bill, Musk threatened political consequences for supporters, posting: “Anyone who campaigned on the PROMISE of REDUCING SPENDING, but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year.” This stance puts Musk at odds with Trump’s legislative priorities, despite Musk having previously worked with the Trump administration until ending his tenure in May.
The conflict also touches on Trump’s recent policy moves, including signing resolutions that end California’s rules for diesel engines and electric vehicle sales mandates. Trump has maintained that “Electric cars are fine, but not everyone should be forced to own one,” a position that directly challenges the business model that has made Tesla successful.
Musk’s response to Trump’s criticisms has been relatively restrained, posting: “So tempting to escalate this. So, so tempting. But I will refrain for now.” However, he did advocate for cutting all subsidies in a separate social media response, suggesting a more complex position on government financial support than Trump’s characterization might indicate.