On July 1, President Donald Trump said that the Department of Government Efficiency (DOGE) should carefully review the subsidies that Elon Musk's companies are receiving in order to cut federal spending.
The statement came shortly after Musk strongly criticized the Trump administration's tax cuts and spending bill.
"Elon could be the recipient of the most subsidies in human history. If he had not had subsidies, Elon would probably have to close his shop and return to South Africa. No more missiles, satellites or electric vehicles. Our country will save our entire fortune," Trump wrote on Truth Social. "Maybe DOGE should look at this closely. Can save a lot of money!!! ", he added.
In response, Elon Musk wrote on social network X: Im saying cut it all. Right now". After a period of silence due to previous conflicts with Mr. Trump, Mr. Musk reappeared on social media to strongly criticize the spending package that the Senate is reviewing, calling it "crazy and sabotage".
Elon Musk stressed that lawmakers who have promised to cut spending but support the bill should go their heads in disgrace. They will lose in the primary election next year, if that is the last thing I do on Earth, he said.
Mr. Musk also repeated his call to establish a new political party. He wrote: "It is time for a new party to truly care for the people".
The relationship between the two formerly close figures became strained after Elon Musk - who spent nearly $300 million on Trump's re-election campaign - turned to strongly criticize the Trump-amentated bill. Elon Musk has previously led DOGE, a federal initiative to cut government spending.
Musk argues that the bill will spike US public debt and erase what DOGE has saved. However, it is unclear whether Mr. Musk's opinions will affect Congress.
This public confrontation has also affected the stock market, causing Tesla shares to fluctuate strongly, losing about 150 billion USD in market capitalization before recovering.
