WASHINGTON: US President Donald Trump suggested on Tuesday that the government efficiency department, previously led by billionaire Elon Musk, should be tasked to review the subsidies paid to the Tesla CEO’s companies to save money, reigniting a war of words between the world’s most powerful person and its richest.
In their latest spat, Trump even threatened to deport Musk to his native South Africa.
The 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 opened 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 robo-taxis being tested in Texas.
Richest man threatens to go after lawmakers who backed the measure; president threatens to deport Tesla CEO to South Africa
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 South Africa,” Trump said in a Truth Social post, referring to the Department of Government Efficiency (DOGE).
“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”.
Trump had last month 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 US debt.
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.
Published in Dawn, July 2nd, 2025