U.S. President Donald Trump and Tesla CEO Elon Musk have intensified their public clash over government subsidies and a contentious spending bill, sparking debates about economic policy and corporate reliance on public funds.
Trump suggested via Truth Social that subsidies to Musk's ventures—including Tesla and SpaceX—should be reviewed, claiming they cost taxpayers a "FORTUNE." He quipped: "Perhaps we should have DOGE take a good, hard look at this?" referencing the Department of Government Efficiency.
Musk fired back, criticizing lawmakers supporting Trump's "big, beautiful bill" as hypocritical for backing a $5 trillion debt ceiling increase. The Tesla chief vowed to oppose their reelection bids, stating: "They will lose their primary next year if it is the last thing I do on this Earth."
The proposed legislation could eliminate electric vehicle tax credits—a move JPMorgan Chase estimates might cost Tesla $1.2 billion annually. Musk called the bill "utterly insane and destructive," warning of job losses and strategic harm to U.S. interests.
Trump countered that he's "strongly against the EV Mandate," emphasizing consumer choice: "Electric cars are fine, but not everyone should be forced to own one." The dispute has drawn in Republican Congressman Thomas Massie, whom Musk pledged to support after Massie voted against the bill.
This high-stakes confrontation highlights growing tensions between corporate innovation agendas and government fiscal priorities, with potential ripple effects across global EV markets and U.S. political alliances.
