Musk Tells Trump: ‘Cut All Subsidies Now’ After Threat to Tesla and SpaceX”
Elon Musk has directly responded to former President Donald Trump’s suggestion to eliminate federal subsidies and contracts for Musk’s companies, daring Trump to “cut it all” after Trump threatened to withdraw support for Tesla and SpaceX.
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The Public Clash
Trump reignited the feud on Truth Social, asserting Musk received “more subsidy than any human being in history.” He claimed that without such support, Musk would be forced to close his U.S. operations and “head back home to South Africa,” putting rocket launches, satellite missions, and electric vehicle production at risk. He also hinted that his proposed Department of Government Efficiency (DOGE) could investigate Musk’s financial ties and contracts.
Musk fired back on X, challenging the move and calling for all subsidies to be cut immediately, responding: “I am literally saying CUT IT ALL. Now.”
Market Impact
Tesla shares dropped around 4% in pre-market trading after the dispute resurfaced. Earlier clashes between Musk and Trump had caused even sharper declines, with a June confrontation triggering a 14% plunge that erased roughly $150 billion in market value overnight.
Underlying Tensions
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Bill conflict: Musk condemned Trump’s proposed multi-trillion-dollar spending bill as “utterly insane.” Trump retaliated by attacking Musk’s dependency on subsidies.
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Political fallout: Musk vowed to support primary challengers against lawmakers who backed the spending bill, calling out hypocrisy.
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DOGE controversy: Trump floated using the renamed Department of Government Efficiency (DOGE)—a brief Musk-led White House initiative—to scrutinize Musk’s subsidies.
What’s at Stake
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Tesla’s growth: Loss of subsidies—including EV tax credits and regulatory credits—could cost Tesla over $1 billion annually.
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SpaceX’s future: Trump also threatened to pull federal contracts from SpaceX, which relies heavily on deals with NASA and the Pentagon.
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Political power: Musk’s influence within the Republican Party could diminish if Trump doubles down on his threats.
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