‘Elon may have to close up shop and head back home to South Africa if…': Donald Trump's warning to Tesla chief amid ‘Big Beautiful Bill' feud
issued a pointed warning to tech billionaire
, suggesting that the
Tesla
and SpaceX CEO might have to 'head back home to South Africa' without the financial support of federal subsidies.
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The statement came in a Truth Social post on July 1 (June 30 in the United States), where Trump criticized Musk's business reliance on government funds and expressed his opposition to the federal electric vehicle mandate. The former allies now appear to be locked in a growing feud, sparked by deep divisions over the Republican Party's controversial new spending legislation, often referred to as the 'Big Beautiful Bill.'
Trump's remarks were part of a broader post in which he denounced electric vehicle requirements and claimed Musk's enterprises—from Tesla to SpaceX—were only possible because of extensive government backing. The president's comments follow a recent statement by Musk calling the bill 'political suicide' for the Republican Party and threatening to launch an entirely new political movement in response.
Donald Trump criticises Elon Musk's business model and subsidy support
In his Truth Social post, President Trump accused Musk of benefiting more from government subsidies than any individual in US history.
He argued that without this taxpayer-funded support, Musk would be unable to continue manufacturing electric cars, launching rockets, or operating satellite services. Trump added, 'Our Country would save a FORTUNE' if it no longer supported Musk's companies through public funds.
Trump's criticism is rooted in the electric vehicle mandate, a regulation requiring automakers to gradually phase out gas-powered vehicles in favor of electric models.
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The mandate has been a major policy debate point, and Trump reiterated that it was 'always a major part of my campaign' to oppose it. He underscored his position by pointing out Musk's alleged dependency on federal contracts, loans, and clean energy tax incentives.
Donald Trump warns Elon Musk
The role of DOGE and federal oversight
Alongside his criticism, Trump proposed that the Department of Government Efficiency—known as DOGE—should investigate the subsidies allocated to Musk's businesses.
DOGE, a federal agency that Musk briefly led during Trump's first term, was created to identify and reduce wasteful spending in government operations.
'Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!' Trump wrote. The suggestion implies that the government might audit the financial assistance received by Tesla, SpaceX, and other Musk-led ventures.
Musk responds: Threatens new political party and slams GOP Bill
Elon Musk quickly responded through a series of posts on X (formerly Twitter).
He criticized the Republican spending plan that Trump supports, describing it as 'insane,' 'debt-driving,' and filled with unnecessary allocations. Musk referred to it as the 'Porky Pig Bill' and warned that it would damage the party's credibility with fiscally conservative voters.
Musk further stated that if the bill were passed in the Senate, he would immediately launch a new political movement—tentatively called the 'America Party.'
According to his statement, the aim would be to provide voters with an alternative to what he termed the 'Democrat-Republican uniparty.'
He also clarified that he supported eliminating subsidies altogether, even those that benefit his own companies. 'I am literally saying CUT IT ALL. Now,' Musk wrote, emphasizing his belief in market-driven innovation over government funding.
The contentious 'Big Beautiful Bill'
At the heart of the conflict is the so-called 'Big Beautiful Bill,' a sweeping legislative proposal that combines tax reforms, energy mandates, and long-term spending adjustments.
The bill is designed to reduce the federal deficit while expanding clean energy initiatives, infrastructure, and national defense funding.
Critics argue that the bill could add over $2.4 trillion to the national debt over the next decade, according to estimates from independent policy analysts cited by Reuters. Supporters claim it is a necessary long-term investment in American competitiveness and sustainability.
The bill includes revisions to tax credits for electric vehicles and proposes phasing out subsidies for certain industries, which may directly impact companies like Tesla.
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