- The US Senate has passed a new Republican tax and spending bill
- The bill’s passage has sparked a public feud between President Trump and Elon Musk
- The conflict centers on the bill’s cuts to clean energy and EV subsidies
President Donald Trump has reignited his public feud with tech billionaire Elon Musk, issuing a sharp rebuke over green energy subsidies and the nationwide push for electric vehicles.
In a post on X on July 1, Trump claimed that Musk’s success is entirely dependent on government support, a charge that comes as a new Republican-led spending bill threatens to cut those very subsidies.
What Is at the Heart of the Dispute?
In his post, President Trump accused Elon Musk of receiving more subsidies than any other individual in U.S. history, arguing that these funds are what have kept companies like Tesla and SpaceX afloat.
Without them, Trump claimed, Musk “would probably have to close up shop and head back home to South Africa.” He framed his opposition to the EV transition as a long-standing part of his political platform, stating that while EVs are fine, the choice to own one should not be mandatory. He even humorously suggested that “DOGE”—a reference to the Department of Government Efficiency that Musk briefly advised—should investigate the matter to find hidden savings.
Related: Crypto Market Cap Sheds $200 Billion From Trump-Musk Feud on U.S. Spending Bill
How Did Elon Musk Respond?
Elon Musk offered a restrained yet pointed reply. He posted a neutral face emoji and a chart tracking the U.S. national debt from 1900 to 2020. The chart showed a steep rise in federal debt, peaking at over $25 trillion.
Across the graph, Musk wrote: “WHEN ARE THEY GOING TO FLATTEN THIS CURVE?” This response appeared to question Trump’s economic credibility rather than address the subsidy claims directly.
What Is the Legislative Context?
This public clash comes as the Senate has just approved a new Republican tax and spending bill that has major implications for Musk’s companies.
Related: Elon Musk’s DOGE is Now Investigating Wealthy Federal Employees for Potential Fraud
Musk has been highly critical of the bill, warning that certain provisions could harm the clean energy industry. The Senate’s version of the bill aims to eliminate the $7,500 EV tax credit, a program that was instrumental in driving Tesla’s early growth. Following the news of the escalating feud, Tesla’s shares dropped by over 5% in European premarket trading as investors worried about the potential fallout.
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