Trump Threatens Musk's Companies Over GOP Megabill Dispute

Tensions between President Donald Trump and billionaire Elon Musk have escalated into a public feud, with Trump threatening to re-examine government support for Musk's companies after the tech mogul trashed the GOP's "big, beautiful bill." The conflict, unfolding on July 1, 2025, centers on a massive spending package Trump aims to pass by July 4, which Musk has labeled "utterly insane" and a job-killing threat, particularly to Tesla's renewable energy sectors.

Trump, in a late-night Truth Social post, suggested the Department of Government Efficiency (DOGE) could review the billions in subsidies and contracts Musk's businesses—such as Tesla and SpaceX—receive, claiming they total more than any individual in history. "Without subsidies, Elon would probably have to close up shop and head back home to South Africa," Trump wrote, hinting at potential cuts to rocket launches, satellite operations, and electric car production. This follows earlier threats to terminate Musk's government ties, a move that could impact SpaceX's critical NASA contracts and Tesla's indirect benefits from EV tax credits.

Musk, once a key Trump ally and financial backer with over $250 million in campaign support, has turned critical, urging lawmakers to "kill the bill" due to its projected $3.3 trillion addition to the national debt over a decade. He warned that supporting the legislation could cost politicians their primaries, escalating the personal nature of the dispute. The rift deepened when Musk suggested forming the "America Party" if the bill passes, a stark departure from his previous alignment with Trump.

The feud's roots trace back to Musk's exit from his DOGE role, where he pushed for spending cuts, only to clash with the bill's tax hikes and spending provisions. Trump has accused Musk of knowing the bill's details and reacting only after losing EV mandates, while Musk denies being briefed, calling the process opaque. The public spat has sparked speculation about Musk's motives, with some pointing to his companies' reliance on government support—estimated at $38 billion—while others see a genuine ideological split over fiscal policy.

Tesla shares have felt the fallout, dropping significantly amid the uncertainty, though SpaceX's indispensable role in U.S. space missions makes immediate contract cancellations unlikely. As the Senate debates amendments, the personal and financial stakes of this high-profile clash continue to grow, leaving the future of their alliance—and Musk's government-backed empire—in question.