US President Donald Trump suggested that the Department of Government Efficiency should look into subsidies given to Elon Musk, claiming "big money" could be saved from these 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 to South Africa," Trump stated on his Truth Social platform.

This comes as the divide between the president and the former chief of DOGE widens, most recently exacerbated by Trump's "Big Beautiful Bill," which will boost US national debt by more than 3 trillion US dollars.

"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 US president added in his post. Tesla's stock dropped 5% in pre-market trading on the Nasdaq after Trump's social media post.

In response, Musk said on his own social media platform X: "I am literally saying CUT IT ALL. Now."

Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that."

Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances.

'Musk needs Trump, Trump does not need Musk'

Related News

Hezbollah condemns Israeli Bekaa massacre, urges action from Lebanon

Lavrov seeks clarity on Trump's ceasefire or secondary tariffs threat

"Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses U.S. subsidies, U.S. sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares.

"Musk needs Trump, Trump does not need Musk," he said.

Musk's businesses benefit from $20bln in government contracts

In February, FT reported that Elon Musk's six businesses benefit from approximately $20 billion in government contracts, which the billionaire has consistently maintained were secured based on merit and have delivered value for money.

Additionally, Tesla has been awarded over $2.8 billion in subsidies from state and federal governments, while SpaceX has emerged as the dominant force in the US space program, securing government contracts worth billions of dollars.

US senators spent Monday locked in a marathon session of amendment votes as Republicans pressed ahead with efforts to pass US President Donald Trump's flagship spending bill, a divisive measure that proposes deep cuts to social welfare programs, while simultaneously adding an estimated $3 trillion to the national debt.

Big Beautiful Bill creates friction between Trump, Musk

The tech billionaire and former Trump ally scrutinized Trump's bill on June 30th, describing it as reckless while threatening to form his new political party in response. 

"It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS, that we live in a one-party country – the PORKY PIG PARTY!!" Musk posted on X, his social media platform. 

It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!

Time for a new political party that actually cares about the people.

— Elon Musk (@elonmusk) June 30, 2025

In subsequent posts, Musk doubled down, accusing Congressmen who support the bill of betraying their voters and declaring that these congressmen will lose their primary elections "if it is the last thing I do on this Earth."

The White House responded to Musk's criticism by pointing to a recent interview with Trump on Fox News, where he said, “I think Elon is a wonderful guy, and I know he's going to do well, always. He's a smart guy,” and suggested that Musk's reactions stems from the bill's elimination of EV subsidies, which would affect Musk's company, Tesla.