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Business Standard
17-07-2025
- Business
- Business Standard
Trump admin pulls $4 bn federal funding for California bullet train project
The Trump administration has revoked federal funding for California's high-speed rail project, intensifying uncertainty about how the state will make good on its long-delayed promise of building a bullet train to shuttle riders between San Francisco and Los Angeles. The US Transportation Department announced it was pulling back $4 billion in funding for the project, weeks after signalling it would do so. Overall, a little less than a quarter of the project's funding has come from the federal government. The rest has come from the state, mainly through a voter-approved bond and money from its cap-and-trade programme. President Donald Trump and Transportation Secretary Sean Duffy both have slammed the project as a "train to nowhere". "The Railroad we were promised still does not exist, and never will," Trump wrote on Truth Social. "This project was Severely Overpriced, Overregulated, and NEVER DELIVERED." The loss marks the latest blow to California by the Trump administration, which has blocked a first-in-the-nation rule to phase out the sale of new gas-powered cars, launched investigations into university admission policies and threatened to pull funding over transgender girls being allowed to compete in girls sports. It also comes as rail project leaders are seeking private investment to help pay for its estimated price tag of more than $100 billion. Voters first approved the project in 2008 and it was supposed to be operating this decade. But cost estimates have consistently grown and its timeline pushed back. State officials are now focused on building a 119-mile (192-kilometre) stretch connecting the Central Valley cities of Bakersfield and Merced that is set to be operating by 2033. The California High Speed Rail Authority is slated to release a report this summer to state lawmakers with an updated funding plan and timeline for the project. Authority officials wrote in a letter earlier this month that the Trump administration made up its mind about revoking funding before thoroughly reviewing the project. They noted that more than 50 structures have already been built, including underpasses, viaducts and bridges to separate the rail line from roadways for safety. "Cancelling these grants without cause isn't just wrong it's illegal," authority CEO Ian Choudri said in a statement Wednesday. "These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025." The authority has asked potential private investors to express their interest by the end of the month. Democratic Gov. Gavin Newsom said the state will keep "all options on the table" to fight the revocation of federal funds. "Trump wants to hand China the future and abandon the Central Valley. We won't let him," he said in a statement. The state has "no viable plan" to complete even the Central Valley segment, said Drew Feeley, acting administrator of the transportation department's Federal Railroad Administration, in a report released last month. He called the project a "story of broken promises" and a waste of taxpayer dollars. California Democrats also have criticised project spending. Democratic Assemblymember Rebecca Bauer-Kahan said at a budget hearing earlier this year that her constituents "overwhelmingly believe" high-speed rail spending "has been irresponsible". Newsom plans to extend the state's cap-and-trade program, a key funding source for the project which is set to expire at the end of 2030, through 2045. The program sets a declining limit on the total amount of greenhouse gas emissions large emitters can release. Those polluters can buy allowances from the state needed to pollute, and about 45 per cent of that money goes into what's known as the Greenhouse Gas Reduction Fund, according to the Independent Emissions Market Advisory Committee, a group of experts that reviews the program. The fund helps pay for climate and transportation projects, including high-speed rail. The bullet train project receives 25 per cent of the money from the fund, which ends up being a little less or a little more than $1 billion annually, depending on the year. Newsom in May proposed guaranteeing $1 billion a year for the project from the fund, but lawmakers have not agreed to that.
TimesLIVE
02-07-2025
- Automotive
- TimesLIVE
Trump suggests slashing Tesla subsidies, Musk says 'cut it all'
US President Donald Trump on Tuesday suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax-cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than 6% before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric automaker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $22 billion in federal contracts. '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 SA,' Trump said in a Truth Social post, referring to the Department of Government Efficiency. 'No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!' In response, Musk said on his own social media platform X, 'I am literally saying CUT IT ALL. Now.' Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO 'could lose a lot more than that'. Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, 'I'll take care of' the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $3 trillion to the US debt. The rift had resulted in Tesla shares erasing $150 billion in market value, as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone 'too far'. 'Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well,' said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. 'Musk needs Trump, Trump does not need Musk,' he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. SHORT-LIVED TRUCE After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it 'utterly insane and destructive' in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill 'should hang their heads in shame!' 'And they will lose their primary next year if it is the last thing I do on this Earth,' Musk said. He also called again for a new political party, saying the bill's massive spending indicated 'that we live in a one-party country — the PORKY PIG PARTY!!' The criticism marked a dramatic shift after the billionaire spent nearly $300 million on Trump's re-election campaign and led the administration's controversial DOGE initiative. Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
West Australian
01-07-2025
- Automotive
- West Australian
Trump vs Musk: US President calls for review of Tesla subsidies, Tesla shares drop, Musk responds ‘CUT IT ALL'
US President Donald Trump has called for a government review of subsidies to Tesla Chief Elon Musk's companies, saying it could save taxpayers billions and escalating a high-profile feud with the richest person in the world and arguably the most powerful. Mr Trump's comments followed renewed criticism from Mr Musk, a major Republican donor, who has attacked the administration's tax and spending bill and threatened to campaign against lawmakers who supported it. Tesla shares dropped more than six per cent in early trading as investors worried the dispute could pose new challenges for Mr Musk's business empire, especially as the electric car maker bets heavily on the rollout of robotaxis in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Mr Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. '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,' Mr Trump said in a Truth Social post. 'No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,' he said, referring to the Department of Government Efficiency. In response, Mr Musk said on his own social media platform X, 'I am literally saying CUT IT ALL. Now.' Mr Trump said Mr Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO 'could lose a lot more than that'. Mr Trump, speaking as he left the White House on Tuesday morning, said Mr Musk was 'very upset' because 'he's losing his EV mandate.' 'But you know, he could lose much more than that, believe me,' Trump continued. 'Elon could stand to lose a lot more.' 'We might need to have DOGE take a look at Elon,' Trump added, joking, 'DOGE is the monster that might have to come back and eat Elon—wouldn't that be something?' Treasury Secretary Scott Bessent also pushed back on Mr Musk's criticism that the bill would balloon the deficit, saying, 'I'll take care of' the country's finances. Mr Trump had in early June threatened to cut Mr Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Mr Musk walked back some of his jabs, saying he had gone 'too far'. 'Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well,' said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. 'Musk needs Trump, Trump does not need Musk,' he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Mr Musk rejoined the debate on Saturday as the Senate took up the package, calling it 'utterly insane and destructive' in a post on X. On Monday, Mr Musk said lawmakers who campaigned on cutting spending but backed the bill 'should hang their heads in shame!' 'And they will lose their primary next year if it is the last thing I do on this earth,' Mr Musk said. He also called again for a new political party, saying the bill's massive spending indicated 'that we live in a one-party country - the PORKY PIG PARTY!!' The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Mr Trump's re-election campaign and led the administration's DOGE initiative. Mr Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Mr Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Mr Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. - with Reuters
Perth Now
01-07-2025
- Automotive
- Perth Now
Trump: DOGE might ‘come back and eat Elon', as feud heats up
US President Donald Trump has called for a government review of subsidies to Tesla Chief Elon Musk's companies, saying it could save taxpayers billions and escalating a high-profile feud with the richest person in the world and arguably the most powerful. Mr Trump's comments followed renewed criticism from Mr Musk, a major Republican donor, who has attacked the administration's tax and spending bill and threatened to campaign against lawmakers who supported it. Tesla shares dropped more than six per cent in early trading as investors worried the dispute could pose new challenges for Mr Musk's business empire, especially as the electric car maker bets heavily on the rollout of robotaxis in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Mr Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. '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,' Mr Trump said in a Truth Social post. 'No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,' he said, referring to the Department of Government Efficiency. In response, Mr Musk said on his own social media platform X, 'I am literally saying CUT IT ALL. Now.' Mr Trump said Mr Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO 'could lose a lot more than that'. Mr Trump, speaking as he left the White House on Tuesday morning, said Mr Musk was 'very upset' because 'he's losing his EV mandate.' 'But you know, he could lose much more than that, believe me,' Trump continued. 'Elon could stand to lose a lot more.' 'We might need to have DOGE take a look at Elon,' Trump added, joking, 'DOGE is the monster that might have to come back and eat Elon—wouldn't that be something?' Treasury Secretary Scott Bessent also pushed back on Mr Musk's criticism that the bill would balloon the deficit, saying, 'I'll take care of' the country's finances. Mr Trump had in early June threatened to cut Mr Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Mr Musk walked back some of his jabs, saying he had gone 'too far'. 'Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well,' said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. 'Musk needs Trump, Trump does not need Musk,' he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Mr Musk rejoined the debate on Saturday as the Senate took up the package, calling it 'utterly insane and destructive' in a post on X. On Monday, Mr Musk said lawmakers who campaigned on cutting spending but backed the bill 'should hang their heads in shame!' 'And they will lose their primary next year if it is the last thing I do on this earth,' Mr Musk said. He also called again for a new political party, saying the bill's massive spending indicated 'that we live in a one-party country - the PORKY PIG PARTY!!' The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Mr Trump's re-election campaign and led the administration's DOGE initiative. Mr Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Mr Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Mr Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. - with Reuters
The Advertiser
01-07-2025
- Automotive
- The Advertiser
Trump eyes Tesla subsidies, Musk says 'cut it all'
US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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," Trump said in a Truth Social post. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!," he said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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," Trump said in a Truth Social post. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!," he said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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," Trump said in a Truth Social post. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!," he said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. US President Donald Trump has suggested the government efficiency department should review the subsidies to Tesla CEO Elon Musk's companies to save money, reigniting a war of words between arguably the world's most powerful person and its richest. Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending. Tesla shares fell more than six per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric car maker, is betting on the success of robotaxis being tested in Texas. The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about $US22 billion ($A33 billion) in federal contracts. "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," Trump said in a Truth Social post. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!," he said, referring to the Department of Government Efficiency. In response, Musk said on his own social media platform X, "I am literally saying CUT IT ALL. Now." Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that". Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, "I'll take care of" the country's finances. Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $US3 trillion to the US debt. The rift had resulted in Tesla shares erasing $US150 billion in market value as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation. The stock recovered after Musk walked back some of his jabs, saying he had gone "too far". "Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well," said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares. "Musk needs Trump, Trump does not need Musk," he said. Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed, but they rose in Norway and Spain during the same month. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday. After weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday, Musk said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this earth," Musk said. He also called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country - the PORKY PIG PARTY!!" The criticism marked a dramatic shift after the billionaire spent nearly $US300 million on Trump's re-election campaign and led the administration's DOGE initiative. Musk has argued that the legislation would greatly increase the country's debt and erase the savings he says he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.
