US President Donald Trump on Tuesday escalated his ongoing feud with Elon Musk by suggesting that the Department of Government Efficiency (DOGE) should investigate the subsidies awarded to Musk’s companies, arguing it could save taxpayers “a fortune.”
The remarks followed renewed criticism from Musk, the world’s richest man, who over the weekend condemned Trump’s sweeping tax-and-spend legislation.
Musk accused lawmakers of betraying their fiscal conservative platforms and vowed to unseat those who supported the bill.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote on Truth Social.
“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.”
Trump added that the federal government “should have DOGE take a good, hard, look at this,” referring to the Department of Government Efficiency — a relatively obscure entity within the executive branch, recently thrust into the spotlight due to Musk’s own past involvement in its cost-cutting initiatives.
Tesla shares dropped 5% in Frankfurt trading following Trump’s post, as the public dispute reignited concerns over the stability of Musk’s relationship with federal agencies and potential disruptions to government contracts.
Musk warns of consequences
Musk responded swiftly on his platform X, formerly Twitter, saying: “I am literally saying CUT IT ALL. Now.”
Musk, whose companies include Tesla, rocket and satellite company SpaceX, and Starlink, has repeatedly criticized Trump’s tax-and-spending bill.
On Monday, he said lawmakers who voted for the measure “should hang their heads in shame!” and threatened electoral consequences:
“They will lose their primary next year if it is the last thing I do on this Earth.”
He also renewed his call for the formation of a new political faction, dubbing the existing bipartisan consensus “the PORKY PIG PARTY!!” and accusing both parties of abandoning fiscal discipline.
SpaceX has secured an estimated $22 billion in federal contracts, many of which are long-term agreements with NASA and the US Department of Defense.
Trump’s threat to scrutinize or cut these subsidies could have direct implications for the company’s future operations.
The earlier phase of the Trump-Musk conflict in June triggered a record $150 billion decline in Tesla’s market value in a single trading day, marking the sharpest one-day loss in the company’s history.
While the stock has since recovered, the renewed tensions have introduced fresh uncertainty.
The bill is causing unease
Trump’s latest comments come amid growing Republican unease over the internal rift, particularly with midterm congressional elections looming in 2026.
Musk, who previously donated nearly $300 million to Trump’s re-election campaign and played a prominent role in the DOGE initiative, now appears to be an unpredictable variable.
Although Musk’s actual influence on legislative outcomes remains uncertain, his public attacks are viewed as a potential distraction for Republicans attempting to maintain their congressional majority.
His sharp U-turn on Trump’s spending policies — after years of alignment — highlights the growing fault lines between the party’s pro-business wing and its populist leadership.
As of now, there is no indication that DOGE has launched any formal review of Musk’s federal support.
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