A public rift between former U.S. President Donald Trump and billionaire entrepreneur Elon Musk widened this week, as Trump called for a review of the massive federal subsidies Musk’s companies have received. The move signals a sharp breakdown in what was once a powerful political alliance between the tech mogul and the former president.
Trump Slams Musk Over “BIG” Government Spending
Posting on Truth Social, Trump questioned whether Musk, CEO of Tesla and SpaceX, should continue benefiting from what he claims are historically high government subsidies. “Elon may get more subsidy than any human being in history… Perhaps we should have DOGE take a good, hard, look at this?” Trump wrote, referencing the Department of Government Efficiency (DOGE), a Trump-era initiative Musk once led.
The comment appears to be a retaliatory swipe following Musk’s fierce condemnation of Trump’s tax-cut and spending bill. The Tesla chief has accused Republican lawmakers of betraying their promises to rein in spending, calling the legislation “utterly insane and destructive.”
Musk Responds: “CUT IT ALL”
In a pointed response on his social platform X, Musk replied: “I am literally saying CUT IT ALL. Now.” Over the weekend, he had warned Republican lawmakers that backing the bill could cost them their primaries. “They will lose their primary next year if it is the last thing I do on this Earth,” he said.
Musk further called for the creation of a new political party, mocking the current political system as the “PORKY PIG PARTY” and accusing it of serving entrenched interests instead of the people.
Fallout Reaches Markets and the 2026 Midterms
The feud, which began as a disagreement over fiscal policy, now threatens broader political and economic implications. Tesla stock experienced sharp volatility, with $150 billion in market value temporarily erased amid investor uncertainty. Although shares have since recovered, the episode has intensified concerns among Republicans about how Musk’s vocal criticism could impact the 2026 midterm elections.
Meanwhile, the extent to which DOGE has saved the government money remains contested. Musk claims the initiative helped reduce waste and inefficiency, but critics argue those savings are overshadowed by the massive incentives received by his ventures.
From Political Allies to Public Adversaries
Once a major donor and informal advisor, Musk reportedly poured nearly $300 million into Trump’s re-election efforts. The current fallout signals a rare political divorce between two of the country’s most high-profile power players.
As Congress debates the future of the spending bill, the outcome of this very public feud—and the scrutiny over Elon Musk subsidies—could reverberate across both Silicon Valley and Capitol Hill.