Date: July 1, 2025
By: BlogHear News Desk
WASHINGTON, D.C. – Former allies Donald Trump and Elon Musk continued their highly public and contentious fallout this week, as Trump suggested that the U.S. government should investigate subsidies granted to Musk’s expansive business empire, claiming “big money” could be saved.
In a Truth Social post early Tuesday, Trump alleged, “Elon may get more subsidy than any human being in history, by far,” adding that without them, “Elon would probably have to close up shop and head back to South Africa.”
The remark appears to be a sharp rebuke aimed at Musk, who has been openly critical of Trump’s newly proposed tax and spending legislation, currently under Senate debate. Musk took to his platform X to denounce the bill, calling it “the biggest debt increase in history,” and renewed threats to form an alternative political party, labeling Democrats and Republicans as a “uniparty.”
Former Allies Turn Rivals
The rift marks a dramatic shift from their once cooperative relationship. Trump had previously installed Musk as head of the Department of Government Efficiency (nicknamed “Doge”), tasking him with identifying cost-saving measures across federal agencies.
In Tuesday’s Truth Social post, Trump doubled down, writing: “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!!!”
The comments triggered a sharp reaction in the markets, with Tesla’s shares falling 5% in pre-market Nasdaq trading.
Government Ties Under Scrutiny
According to a February report from the Financial Times, Musk’s companies — including Tesla and SpaceX — benefit from approximately $20 billion in U.S. government contracts and subsidies. Tesla alone has received over $2.8 billion in federal and state support.
Musk has defended the financial backing, insisting that all contracts were awarded on merit and deliver value for taxpayers.
On Tuesday, Musk responded to Trump’s subsidy critique by posting on X, “I am literally saying CUT IT ALL. Now,” in what appears to be an effort to portray consistency in his anti-spending stance.
Personal Attacks Escalate
The public feud has taken a personal turn in recent weeks. Musk has called for Trump’s impeachment, accused his trade policies of risking economic recession, and even suggested he may decommission NASA-related SpaceX spacecraft. He also made veiled references to Trump’s alleged connections with disgraced financier Jeffrey Epstein.
However, Musk has since walked back some of his statements, writing on X that he “regretted” the intensity of his criticism, admitting some “went too far.”
What’s Next?
With the Senate pressing forward with the 940-page tax and spending bill, and the general election months away, both Trump and Musk appear locked in a political and ideological battle. Whether Musk follows through with his political party ambitions remains to be seen, but for now, what was once an alliance of two powerful figures has devolved into one of Washington’s most dramatic public feuds.
Stay updated with the latest political and economic developments at BlogHear.com.
