A public spat between Donald Trump and Elon Musk over subsidies and spending could rattle Tesla, reshape political alliances, and impact billions in federal contracts.
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A public spat between Donald Trump and Elon Musk over subsidies and spending could rattle Tesla, reshape political alliances, and impact billions in federal contracts.
Trump Questions Musk’s Federal Subsidies

Trump urged the Department of Government Efficiency (DOGE) to examine subsidies Musk’s companies receive, citing potential savings.
Musk’s Businesses Deeply Tied to Government Funds

SpaceX alone holds about $22 billion in federal contracts, while Tesla benefits from EV incentives.
Musk Fires Back on Social Media

Responding on X, Musk said: “I am literally saying CUT IT ALL. Now,” doubling down on his anti-spending stance.
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Feud Sparks Stock Market Turmoil

Tesla shares dropped nearly 5% after Trump’s remarks, reviving investor fears from earlier clashes.
Musk’s Political Allegiances Shift

Despite spending $300 million on Trump’s campaign, Musk now calls for a new political party.
Accuses Both Parties of Overspending

Musk dubbed the current system the “PORKY PIG PARTY,” blasting what he sees as reckless fiscal policy.
Stakes Are High for Tesla’s Future

The feud may complicate Tesla’s regulatory approvals, particularly for futuristic vehicles like robotaxis.
Broader Impact on U.S. Politics

Republicans worry Musk’s volatile support could affect their chances in the 2026 midterms.