Trump is now calling on the Department of Government Efficiency (DOGE) to review subsidies given to Elon Musk’s companies; SpaceX, Tesla, and Starlink, claiming cutting them could save the US “a FORTUNE.” 
President Donald Trump reignited his feud with Elon Musk by calling on the Department of Government Efficiency (DOGE) to investigate and possibly slash the federal subsidies granted to Musk's companies. Trump made the statement on his social media platform, Truth Social, claiming Musk has received more government support than “any human being in history.” He said the U.S. could save a fortune by pulling the plug on federal funding to companies like Tesla, SpaceX, and Starlink three major firms that collectively benefit from billions in government contracts and subsidies.
Trump’s remarks followed renewed criticism from Musk, who earlier slammed Trump’s $3 trillion tax-and-spending bill. Musk condemned the legislation as financially irresponsible and damaging to the country’s economic health. The billionaire, known for his shifting political stances, accused lawmakers who campaigned on fiscal responsibility of betraying voters by supporting the bill.
Trump has previously threatened to cut off subsidies to Musk's companies. SpaceX alone holds about $22 billion in federal contracts. Their relationship, once cooperative, has turned hostile with Trump suggesting Musk’s entire empire may collapse without government backing. The ongoing feud has spilled into public financial markets. Tesla’s stock dropped sharply in Frankfurt, declining by 5% following Trump's comments.
The president's post was provocative and personal. He claimed that Musk’s businesses would shut down without subsidies and mocked the idea that Musk’s contributions had saved the government money. Trump’s call to have DOGE audit Musk’s companies comes after Musk had led that very initiative during Trump's previous administration. This power struggle could have deep political and economic consequences particularly as the Republican Party navigates its stance on corporate subsidies, fiscal discipline, and internal loyalty.
In a rapid response to Trump’s Truth Social outburst, Elon Musk fired back on his own platform X, formerly Twitter, with a blunt message: “I am literally saying CUT IT ALL. Now.” Musk has shifted dramatically from being a Trump supporter to one of his fiercest fiscal critics. His frustrations center around the recently passed $3 trillion spending package, which Musk calls “utterly insane and destructive.” Musk has also pledged to actively campaign against lawmakers who supported the bill, especially those who previously promised to reduce government spending. He warned these politicians that they would lose their primaries, stating, “if it is the last thing I do on this Earth.” He has even floated the idea of forming a new political party, sarcastically dubbing the current system the “PORKY PIG PARTY.” This marks a significant reversal for Musk, who once donated nearly $300 million to Trump’s reelection campaign and played a key role in the government’s cost-cutting efforts through DOGE. Now, Musk argues that those gains are being erased by reckless government spending, and he is distancing himself from his former political allies. While Musk's influence over Congress remains uncertain, his criticism is resonating loudly. Some Republicans are reportedly concerned that the Trump-Musk feud could create divisions in the party ahead of the 2026 midterms, potentially jeopardizing their control of Congress. The controversy is also stirring market concerns. Earlier in June, when Musk first lashed out over the bill, Tesla’s value plummeted by $150 billion in a single day its largest drop ever. Whether this public spat leads to real policy changes or just political theater remains to be seen. But it’s clear both men are prepared to escalate with money, power, and political futures at stake.
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