US President Donald Trump has suggested reviewing subsidies tied to Elon Musk, including those received by Tesla and SpaceX, as their public feud over the looming tax bill continues to escalate.
In a recent post on his social media platform Truth Social, Trump claimed that Musk receives more subsidy than any human being in history and that without these subsidies, he would have to close up shop and head back home to South Africa.
The Background of the Feud
The feud began when Musk renewed his criticism of the sweeping tax-cut and spending bill, which the White House hopes to sign into law by July 4th.
Musk has pledged to unseat lawmakers who supported the bill, which he claims would add about $3 trillion to the US debt.
Trump’s remarks came after Senate Republicans narrowly passed the bill, with Vice President JD Vance casting the tie-breaking vote.
The outcome capped an unusually tense weekend of work at the Capitol, with the president’s signature legislative priority teetering on the edge of approval or collapse.
The Consequences for Tesla and SpaceX
The feud could create hurdles for Tesla and the rest of Musk’s business empire.
The US Transportation Department regulates vehicle design and would play a key role in deciding whether Tesla can mass-produce robotaxis without pedals and steering wheels.
SpaceX, on the other hand, has about $22bn in federal contracts.
Musk’s Conflicts of Interest
Musk has been accused of having conflicts of interest while leading the Department of Government Efficiency (DOGE) initiative.
A report found that 70 percent of the agencies he aimed to make significant cuts to had open investigations against him and his associated companies.
The Market Response
Tesla’s stock tumbled roughly 6 percent after Trump’s Truth Social post, with investors fearing that the Trump Administration will show scrutiny around Musk-related US government spending related to Tesla and SpaceX.
The tech-heavy Nasdaq and S&P 500 also erased some of their gains, while the Dow Jones Industrial Average trended upwards.