The feud between President Donald Trump and tech mogul Elon Musk is back in the spotlight—this time over a massive federal tax and budget package that Trump supports and Musk strongly opposes.
On Monday, June 30, Trump took to his Truth Social account to suggest that Musk’s companies—particularly Tesla—should no longer receive federal subsidies. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote. “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 Department of Government Efficiency (DOGE), created during Trump’s second term, is tasked with trimming federal spending. Musk briefly led the agency before stepping down and drifting into open criticism of the Trump administration.
By Tuesday, July 1, ABC News reported that Trump told reporters his administration would “have to take a look at” the possibility of deporting Musk—a naturalized U.S. citizen originally from South Africa.
Musk’s response was blunt and swift.
“I am literally saying cut it all. Now,” he posted on X, denying that his opposition to the budget was tied to protecting subsidies for his businesses. Musk claims his concern is the proposal’s projected $5 trillion increase to the national debt ceiling.
Nonetheless, watchdog group Good Jobs First reports that Tesla has received nearly $3 billion in government subsidies since 2007, ranking 16th among all U.S. companies in total aid. Musk’s other ventures, like SpaceX and Starlink, do not appear in the top 100.
Trump, meanwhile, has repeatedly suggested Musk’s criticism of the budget is financially motivated. “He talks about debt, but it's all about his wallet,” Trump said during a campaign-style rally last week.
The two once had a close relationship. Musk spent time at Mar-a-Lago between Trump’s 2024 election victory and inauguration, even describing himself at the time as the president’s “first buddy.” That ended shortly after Musk’s exit from DOGE, when he began openly criticizing Trump on social media—including once hinting at ties between Trump and Jeffrey Epstein, a claim Musk later said he regretted.
