The brewing feud between US President Donald Trump and tech billionaire Elon Musk has reached a dramatic new low, with Trump threatening to revoke federal subsidies and even deport Musk to South Africa amid rising tensions over the administration’s flagship $4 trillion tax and spending bill.
On Monday, Trump launched a scathing attack on Musk, claiming the Tesla and SpaceX CEO received “more subsidies than any human being in history” and would be forced to “close up shop and head back home to South Africa” without government support. The threat followed Musk’s latest criticism of what he called the “Big, Beautiful bill” – a Republican proposal set to slash electric vehicle tax credits and expand spending across other sectors.
“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 wrote on Truth Social. He further suggested deploying DOGE, the cost-cutting government department Musk once headed, to investigate the billionaire’s government contracts, adding, “Big money to be saved!!!”
At the centre of the dispute is the bill’s plan to end the popular $7,500 consumer tax credit for electric vehicles, which Musk argues will deal a crippling blow to EV adoption by making them unaffordable for many consumers. Trump, however, insists he has always opposed EV mandates, calling them “ridiculous” and reiterating that electric cars should remain a choice rather than an obligation.
In a swift clapback, Musk tweeted, “I am literally saying CUT IT ALL. Now,” daring Trump to follow through on his threat to revoke subsidies. The world’s richest man further escalated his rhetoric by branding the proposed legislation a “debt slavery bill” that would push America deeper into bankruptcy.
“It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS, that we live in a one-party country – the PORKY PIG PARTY!! Time for a new political party that actually cares about the people,” Musk wrote.
He also threatened to launch a new “America Party” to challenge Republican lawmakers supporting the bill, underlining the rapidly souring relationship between him and the President. Musk, who was once Trump’s largest political donor during the 2024 election and served as head of the Department of Government Efficiency (DOGE) in the early months of Trump’s return to office, has become an increasingly vocal opponent since stepping down from his DOGE role in May.
On Tuesday, when asked about deporting Musk, Trump did not hold back. “We’ll have to take a look,” he told reporters en route to inaugurating a controversial migrant detention centre in Florida dubbed “Alligator Alcatraz”. He also signalled potential action against Musk’s sprawling empire of government contracts, including those underpinning Starlink’s satellite internet and SpaceX’s rocket launches.
“We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon,” Trump said, before adding, “I don’t think he should be playing that game with me.”
Despite the saber-rattling, Musk remained characteristically cryptic on social media. Reacting to a video of Trump threatening deportation and subsidy removal, Musk tweeted, “So tempting to escalate this. So, so tempting. But I will refrain for now.”
The dispute has exposed the stark ideological fissures within America’s conservative movement. While Vice President JD Vance defended the bill, saying illegal immigration would bankrupt the country faster than any spending measure, Musk maintained his stance that the proposed legislation’s trillions in new debt would endanger economic stability far more than expanded migration benefits.
Musk’s pivot from Trump ally to fierce critic also marks a consequential shift in America’s political landscape. His promise to create a rival party could fracture the Republican vote at a time when Trump is seeking to consolidate his power base heading into the next election cycle. Meanwhile, his threat to withhold investments or shift political funding could significantly impact campaign strategies for key Senate and House races in 2026.
For now, the world watches as two of America’s most influential figures – one shaping policy from the White House, the other shaping the future of technology and political discourse – exchange barbs with high economic and political stakes. Whether this feud culminates in Musk’s political rebellion or Trump’s crackdown on Musk’s empire remains to be seen. But it has already highlighted how fragile the alliance between billionaire capital and populist power can be – and how quickly it can turn into open warfare when mutual interests diverge.
