Musk departed DOGE in late May when he began aggressively campaigning to kill Trump’s signature bill, prompting a war-of-words between the billionaire and President before Musk walked back some comments.

Trump suggested that the department initially formed and headed by Musk, the Department of Government Efficiency (DOGE), should assess US funding for rocket launches, satellites and EV production as areas to save money.

The context: In a Truth Social post , Trump wrote that Musk “may get more subsidy than any human being in history, by far,” and that without the subsidies, he would have to shutter his business and “head back home to South Africa.”

The news: US President Donald Trump threatened to withdraw US government subsidies from Elon Musk’s Tesla in order for the government to save money as the feud between the former allies intensifies.

“Perhaps we should have DOGE take a good, hard look at this?” Trump said.

The President’s comments follow further criticisms levelled by Musk at Trump’s far-reaching tax and spending bill, which is currently being debated in the US Senate. Trump has set a date of 4 July for the bill’s passing.

Musk has been voicing his frustrations about the bill’s recent amendments this week after Senate Republicans released a new version of the legislation on Saturday which would speed up the elimination of the popular US$7,500 ($11,400) consumer tax credit for electric vehicle purchases.

Musk took to X to air his frustrations with the bill, stating: “If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”

Musk separately posted that his opposition to the bill is not based on the issue of subsidies which would impact sales of his EVs, adding “I am literally saying CUT IT ALL. Now.” The billionaire has been a loud advocate to reducing US government debt, arguing that Trump’s ‘big, beautiful bill’ would increase the country’s debt ceiling by US$5 trillion.

The numbers: Data released on Tuesday shows Tesla’s sales across Sweden and Denmark fell for a sixth consecutive month in June. The carmakers sales were down 64.4% and 61.6% in the 12 months to June in Sweden and Denmark respectively. Tesla’s Q2 deliveries are also expected to fall 8% in 2025, 11% year-on-year, reports Reuters.

TLDR

Tesla stock drops over 4% in premarket trading as Trump-Musk feud escalates with Trump attacking Musk over EV subsidies

Trump’s “One Big Beautiful Bill” includes provision to eliminate $7,500 EV tax credit that many Tesla customers use

Musk criticized the spending bill as “utterly insane and destructive” on social media platform X

Tesla deliveries expected to fall 13-20% year-over-year when reported Wednesday, with Wall Street expecting around 355,000-386,000 units

Tesla shares have lost more than 20% of their value this year following ongoing political tensions

Tesla shares plunged more than 4% in premarket trading Tuesday as the public feud between CEO Elon Musk and President Donald Trump reached new heights.

Trump launched a scathing attack on Musk via his Truth Social platform early Tuesday morning. The president accused the Tesla chief of benefiting excessively from 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 wrote.

BREAKING: Trump says Elon Musk would go broke and return to South Africa without US government subsidies for his businesses pic.twitter.com/7mXr0R4Pqq — Larry Madowo (@LarryMadowo) July 1, 2025

The attack came after Musk criticized Trump’s “One Big Beautiful Bill” on social media platform X. Musk called the legislation “utterly insane and destructive.”

The Senate bill includes a provision to eliminate the $7,500 new EV tax credit after September. This timeline is faster than the House proposal, which would end the credits by year-end for most vehicles.

Many Tesla customers rely on these tax credits when purchasing vehicles. The company also benefits from battery-storage and solar panel tax credits.

Trump escalated his rhetoric further in his Truth Social post. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” he wrote.

The president suggested his cost-cutting Department of Government Efficiency should examine Musk’s subsidies. Musk recently stepped down from running DOGE to focus on his businesses.

Political Tensions Mount

The latest clash follows months of deteriorating relations between the former allies. Trump and Musk’s previous public spat on June 5 sent Tesla shares tumbling 14%.

That single-day drop erased more than $150 billion from Tesla’s market capitalization. The stock has struggled to recover since then.

Tesla shares have lost more than 20% of their value this year. The political uncertainty has weighed heavily on investor sentiment.

Musk’s criticism of the spending bill was particularly harsh. “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 posted.

Delivery Disappointment Looms

Beyond the political drama, Tesla faces operational challenges. The company will report second-quarter deliveries on Wednesday.

Wall Street expects around 386,000 vehicles delivered, down 13% from 444,000 in the same period last year. Some analysts predict even lower numbers around 355,000 units.

This would represent a 20% year-over-year decline. Delivery estimates started the quarter at 500,000 vehicles but fell after disappointing first-quarter results.

Tesla’s first-quarter deliveries already dropped 13% year-over-year. The company is struggling with demand challenges across key markets.

Second-quarter earnings will follow the delivery report. Analysts expect earnings per share of 44 cents, down from 52 cents in the prior year.

At the start of 2025, Wall Street had expected second-quarter EPS of 85 cents. Estimates have steadily declined as the company faces headwinds.

Interestingly, Tesla’s recent robo-taxi launch in Austin, Texas had minimal impact on the stock. Shares rose less than 0.5% following the service debut.

The lack of reaction suggests investors are focused on core business fundamentals rather than future technology promises.

Tesla’s stock (TSLA) crashed by as much as 5% in pre-market trading after President Trump threatened to set DOGE on Elon Musk, who has been criticizing his ‘Big Beautiful Bill’.

After being kindly shown the door to the White House last month, Musk had a brief moment of clarity and started to criticize Trump and the Republican party, which he helped elect with almost $300 million of his own money in the 2024 elections.

He highlighted how Trump’s “Big Beautiful Bill” is expected to increase the deficit and debt. The Tesla CEO even linked Trump to Jeffrey Epstein, something that has been well known for decades, but Musk conveniently ignored it as he was backing the President and wearing hats that read, “Trump was right about everything.”

Musk quickly calmed down and even apologized for “going too far” and started praising Trump again.

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That didn’t last long.

Over the last few days, as the Senate attempts to pass Trump’s budget and tax bill, Musk has renewed his efforts to halt the legislation.

The CEO appeared to renew the attacks after the Senate updated the bill to kill the EV incentive sooner and to increase taxes on solar and wind projects.

However, Musk said that he doesn’t mind EV and renewable energy subsidies going away, but he believes that fossil fuel subsidies should also be removed, which is not in the plans at all.

Trump campaigned on Musk’s money, claiming that he would get America to “drill, baby, drill” again.

The CEO went as far as threatening any Senator who vote for the bill, all Republicans, to face his money in their next primary. He added that if the bill passes, he will create a new “America Party.’

Musk’s attacks have focused on the bill itself and the Republicans voting for it, but Trump likes to call it his bill, and unsurprisingly, he is unhappy with Musk.

Last night, he took to Truth Social to highlight again that Musk “would probably have to close up shop and head back to South Africa” without US government subsidies.

The President then suggested that he could have DOGE, a department that Musk created, go after him and the subsidies that his companies get:

Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. 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 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!!!

Tesla’s stock dropped by more than 4% in pre-market trading following the President’s threat.

Musk responded to the President by pointing out that he is asking to remove the subsidies, but he didn’t add his usual caveat of also removing all subsidies for fossil fuel.

Electrek’s Take

It’s both sad and funny to see Elon now. It’s sad because the US is plunging back into an energy dark age of relying on fossil fuels. Still, it’s amusing because Elon is acting as if he’s just now realizing what he has done, despite everyone but a few cult members screaming at him that this was going to happen for the last year.

Elon got what he wanted out of Trump with his $300 million, and now, he realizes that his influence has limits and that Trump is going to do way more damage than just what Musk wanted out of him: to stop illegal immigration and the so scary “woke mind virus.”

The result will be a significant blow to the growth of electric vehicles and clean energy in the US, and Tesla will be affected in the process, exactly what we have been saying for the last year.

The feud between United States president, Donald Trump and former DOGE chief, Elon Musk has been renewed over the “Big Beautiful Bill”

This time, Trump threatened to send his former friend and adviser back to South Africa as the Tesla boss threatened to float a new political party if the Bill sees the light of day in the US Senate

While Trump threatened a DOGE review, Musk threatened to support ‘The America Party’, contingent upon Republican lawmakers passing Trump’s comprehensive domestic policy legislation

Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.

President of the United States, Donald Trump, has hit back at billionaire Elon Musk, warning that without subsidies from the American government, the Tesla CEO would “probably head back home to South Africa.”

US President Trump issues fresh deportation threat to TESLA CEO Elon Musk. Photo credit: ALLISON ROBBERT/AFP, Kevin Dietsch/Getty Images

Source: Getty Images

DOGE: Trump’s deportation warning to Elon Musk

As reported by Times of India, Trump reignited his feud with Elon Musk and threatened to have the Department of Government Efficiency (DOGE) look into federal money received by the billionaire, who until May 2025, had spearheaded the very same department focused on slashing fraud and waste in U.S. government spending.

Trump took aim at Musk, the CEO of electric car maker Tesla and space tech firm SpaceX, after his former political ally sharply criticised the president’s flagship One Big Beautiful Bill Act for its impact on the federal deficit.

President Trump threatens to use DOGE against Elon Musk over the Big Beautiful Bill. Photo credit: The Washington Post via Getty Images

Source: Getty Images

In a post on Truth Social, on Monday night, June 30, Trump said:

“Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.”

“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 more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”

The US president also suggested that DOGE, the Department of Government Efficiency, which Musk once led, should now investigate the extent of subsidies flowing to Musk’s companies. “Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” Trump added.

Elon Musk threatens to float new party

This comes after Musk doubled down on his distaste for President Trump’s “big, beautiful bill,” calling it “political suicide for the Republican Party.”

Musk also threatened to launch a new political party if the bill gets passed in the US Senate.

“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” he said in another post.

Read more about Trump, Elon Musk here:

Reactions as Elon Musk apologises to Trump

Legit.ng earlier reported that Elon Musk publicly admitted regret over critical comments made about Donald Trump in early June 2025, claiming his support helped Trump win the 2024 election.

The rift between the duo deepened after Musk’s criticism, with Trump confirming their relationship was over. Musk later expressed regret, acknowledging that some posts went “too far”.

While some users praised Musk for his apology, others questioned the sincerity of his statements, particularly regarding claims about Trump’s involvement in the Epstein case.

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Source: Legit.ng

“If this insane spending bill passes, the America Party will be formed the next day,” Elon Musk wrote in an X post on Monday.

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Elon Musk and Donald Trump are not done fighting over the president’s “Big Beautiful Bill.”

Musk started criticizing Trump’s spending bill on June 5 but walked back the attacks just days later. Musk said in an X post on June 11 that some of his remarks on Trump had gone “too far.”

But the detente has not lasted, and the argument is heating up again. The Tesla and SpaceX CEO reignited his attacks on the bill over the weekend, and Trump has hit back with his own post on Truth Social.

Related video Trump attempts to unify GOP ahead of ‘big, beautiful bill’ deadline

On Saturday, Musk wrote on X that the president’s signature tax bill “will destroy millions of jobs in America and cause immense strategic harm to our country.”

“Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future,” he continued.

GOP lawmakers hope to send the bill, which is pending a vote in the Senate, to Trump’s desk by Friday. Musk, however, said he would defeat politicians who voted for the bill if it passed and form his own political party.

“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 wrote in an X post on Monday.

“Time for a new political party that actually cares about the people,” he said.

Musk said in a follow-up post, published just an hour later, that any politician who voted for the bill having campaigned on cutting government spending should “hang their head in shame.”

“And they will lose their primary next year if it is the last thing I do on this Earth,” he added.

Musk said later that a new party, the “America Party,” would be formed the day after the “insane spending bill passes.”

“Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” Musk added.

Trump responded early Tuesday morning with a Truth Social post.

He said Musk knew Trump was “strongly against” the EV mandate, the Biden-era incentives to buy EVs that the president’s bill threatens to roll back.

“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,” he said.

Trump then suggested getting DOGE to take a “good, hard, look” at Musk’s 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 more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” he said.

Less than an hour later, Musk wrote a series of X posts, doubling down on his opposition to the spending bill.

“Hitting the debt ceiling is the only thing that will actually force the government to cut waste and fraud,” Musk wrote. “That’s why the debt ceiling legislation exists!”

In another post minutes later, Musk added: “All I’m asking is that we don’t bankrupt America.”

He followed up with a question to lawmakers: “What’s the point of a debt ceiling if we keep raising it?”

Musk and the White House did not respond to a request for comment from Business Insider.

Tesla stock fell more than 5% in early-hours trading Tuesday. Wedbush analyst Dan Ives said in a note that the feud was “a soap opera that remains an overhang on Tesla’s stock” as investors fear Trump taking a more hawkish line on Musk’s companies.

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Musk and Trump’s feud began after Musk left Trump’s White House

Musk had long opposed Trump’s “One Big Beautiful Bill.” In an interview with CBS that aired last month, Musk said he was “disappointed to see the massive spending bill.”

Musk said the bill undermined the work of DOGE, the government cost-cutting outfit he led until stepping back. Musk announced his departure from the White House DOGE office on May 28.

“I think a bill can be big, or it could be beautiful. I don’t know if it could be both,” Musk told CBS.

Musk was a prominent backer of Trump’s presidential campaign last year, where he spent at least $277 million backing Trump and other GOP candidates in the 2024 elections.

When Musk criticized Trump’s bill earlier in June, he took credit for Trump and the GOP’s electoral victories in 2024. That was also when he first floated the possibility of forming his own political party.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk wrote on X on June 5.

“Such ingratitude,” he continued.

Musk said in an interview with Bloomberg on May 20 that he had “done enough” political spending and planned to “do a lot less in the future.”

“Well, if I see a reason to do political spending in the future, I will do it,” he added.

Trump initially expressed disappointment at Musk’s behavior but later took a more conciliatory tone. Trump said last week that he still views Musk positively but has not spoken to him much.

“He’s a smart guy. And he actually went and campaigned with me and this and that,” Trump said in an interview with Fox News’ Maria Bartiromo that aired Sunday.

“But he got a little bit upset, and that wasn’t appropriate,” he added.