In a dramatic escalation of an already bitter feud, US President Donald Trump has publicly warned Elon Musk to “close up shop and move back to South Africa,” threatening to choke off the billions in government subsidies and contracts that fuel the Tesla and SpaceX empire. Trump’s threat, issued on Truth Social, comes on the heels of Musk’s blistering attacks on Trump’s controversial spending package, dubbed the ‘One Big Beautiful Bill’.
For years, Musk and Trump had forged an uneasy alliance, with Musk serving as the head of the Department of Government Efficiency (DOGE). But their relationship began to unravel earlier this month when Musk lambasted the bill as a “disgusting abomination” for ballooning the deficit while undermining tax credits that underpin America’s electric vehicle boom.
“Electric cars are fine, but not everyone should be forced to own one,” Trump wrote on Truth Social. “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.”
The warning comes with real consequences. SpaceX relies heavily on NASA contracts for its Dragon spacecraft, while Tesla’s growth has historically leaned on federal and state-level EV incentives. Trump’s threat to “terminate billions” in support could upend Musk’s sprawling businesses overnight.
But the billionaire entrepreneur isn’t backing down. Musk has since doubled down on his attacks, describing the bill as “utterly insane” and accusing lawmakers of hypocrisy for supporting record spending after campaigning on fiscal discipline. He has also floated the idea of launching the “America Party” — a new political force meant to break what he calls the “Democrat-Republican uniparty.”
“If this insane spending bill passes, the America Party will be formed the next day,” Musk declared on X. “Our country needs an alternative so that the people actually have a voice.”
Trump, known for his combative political style, fired back by raising the specter of deportation and hinting SpaceX’s rocket launches and Tesla’s EV production could be grounded altogether. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” he posted. “Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
The feud has become deeply personal. Musk has accused Trump of ingratitude, claiming his support was pivotal to Trump’s election win. He has also threatened to decommission SpaceX’s Dragon fleet — a move that would send shockwaves through NASA’s human spaceflight program.
Musk even sparked controversy by implying Trump’s name appears in the Epstein files — an allegation he later retracted, but not before fueling headlines and speculation.
Political insiders say the clash exposes a broader rift within the American right. While Trump’s populist wing wants to curb spending and pare back green subsidies, figures like Musk represent a libertarian-tech strain that sees clean energy and space exploration as national priorities — so long as they’re backed by market incentives rather than mandates.
As the 2025 campaign cycle heats up, the standoff could reshape both the Republican landscape and America’s clean energy ambitions. If Musk does launch the America Party, it could peel away voters frustrated by ballooning deficits, opaque deals, and what he calls “the Porky Pig Party.”
Whether Trump will follow through on his threats remains to be seen. But one thing is clear: for two men who’ve each defined American disruption in their own way, the stakes of this clash extend far beyond Twitter feuds and Truth Social posts. They reach into the heart of how the world’s largest economy will balance innovation, debt, and democracy in the years ahead.
