Tesla shares tumbled more than 5% Tuesday after President Donald Trump threatened to investigate government subsidies received by Elon Musk's companies, reigniting a public feud between the two billionaires that has spilled into the legislative battle over Trump's multi-trillion-dollar domestic policy bill.
"Elon may get more subsidy than any human being in history, by far," Trump wrote in a Truth Social post just after midnight. "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!!!"
The reference to DOGE-the Department of Government Efficiency-targeted the same office Musk once led before resigning in May. The move followed a day of intensifying attacks from Musk, who said on X: "I am literally saying CUT IT ALL. Now." Earlier on Monday, Musk warned that if Trump's "insane spending bill" passed, he would form a new political party. "Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE," he wrote.
The $3.3 trillion Senate bill-referred to by Trump as his "Big, Beautiful Bill"-has triggered fierce opposition from fiscal conservatives and tech industry leaders. The nonpartisan Congressional Budget Office projects the legislation will add trillions to the national debt over the next decade while eliminating several green energy incentives and delaying tax benefits for emerging technology sectors.
Musk, who spent nearly $288 million backing Republican candidates in the 2024 cycle, including Trump, escalated his criticism in recent days. "Lawmakers who vote for the bill will lose their primary next year if it is the last thing I do on this Earth," Musk posted.
Tuesday morning, Trump defended the legislation and signaled deeper retaliation. "He's upset that he's losing his EV mandate... but he can lose a lot more than that, I can tell you," Trump told reporters.
SpaceX, Tesla, and Starlink have all benefited from federal contracts and tax credits. According to The Washington Post, Musk's companies have received at least $38 billion in subsidies. The president's threat to cut off those benefits added to investor concerns, with Tesla stock falling sharply in premarket trading.
Meanwhile, the bill suffered further political setbacks in the Senate. An amendment to block state regulation of artificial intelligence-originally included in the House version-was stripped from the legislation after Senator Marsha Blackburn of Tennessee reversed her support. A moratorium "could allow Big Tech to continue to exploit kids, creators, and conservatives," Blackburn said, leading a 99-1 vote to eliminate the AI provision.
