In a heated exchange, U.S. President Donald Trump has suggested slashing government subsidies to Tesla and other companies owned by Elon Musk. This comes after Musk openly criticized Trump’s new spending bill, calling it “utterly insane and destructive.”
On Tuesday, Trump took to his social platform, Truth Social, stating, “Elon may get more subsidy than any human being in history, by far, and 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.”
Musk, the CEO of Tesla and owner of the platform X, didn’t hold back. He warned that lawmakers supporting Trump’s “big, beautiful bill” risk losing their primaries next year. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk posted. “And they will lose their primary next year if it is the last thing I do on this Earth.”
The controversial spending bill is expected to raise the debt ceiling by $5 trillion. Musk argues it will “destroy millions of jobs in America and cause immense strategic harm to our country.” One significant impact of the bill could be the elimination of electric vehicle tax credits, which currently offer up to $7,500 for a new EV and $4,000 for a used one. JPMorgan Chase estimates this move could cost Tesla $1.2 billion.
Musk also voiced support for Republican Congressman Thomas Massie of Kentucky, who voted against the bill. Trump had criticized Massie for his opposition, vowing to campaign against him in the GOP primary.
Responding to Musk’s criticisms, Trump wrote that Musk knew he was “strongly against the EV Mandate” before endorsing him for president. “It is ridiculous, and was always a major part of my campaign,” Trump stated. “Electric cars are fine, but not everyone should be forced to own one.”
This clash between a tech titan and the president highlights the ongoing debate over government spending and the future of electric vehicles in the U.S. The outcome could have significant implications for the auto industry and the broader economy.
