Trump Threatens to Slash Musk Subsidies; Tesla Sinks 5%

U.S. President Donald Trump reignited his feud with Elon Musk, writing on Truth Social that the Tesla and SpaceX chief executive may have received "more subsidy than any human being in history" and would "have to close up shop and head back home to South Africa" without federal support. Trump added that the Department of Government Efficiency (DOGE) — an agency Musk previously led — should conduct a “good, hard look” at the assistance given to Musk’s companies.

Trump’s threat followed days of criticism from Musk, who has attacked the president’s signature “Big Beautiful Bill,” calling the sweeping tax-and-spending package “utterly insane and destructive” and renewing calls for a break-away political party. The president countered by saying the United States could “save a fortune” if it halted rocket launches, satellite projects and electric-vehicle incentives linked to Musk’s ventures.

Musk responded on his X platform, writing, “CUT IT ALL. Now.” The exchange unsettled investors: Tesla shares fell about 5% in pre-market trading on Tuesday, reversing gains made after a brief June truce between the two men. Analysts noted that SpaceX alone holds roughly $22 billion in federal contracts, underscoring the potential financial impact if Washington were to follow through on Trump’s warning.

The spat complicates relations between the White House and the world’s richest person at a moment when Musk’s businesses depend on government policy—from electric-vehicle tax credits to NASA launch approvals—and as lawmakers debate a bill that independent estimates say would add about $3 trillion to the national debt.