Musk-Trump feud enters second round as EV subsidies face elimination
Tesla CEO Elon Musk has reignited his feud with Donald Trump over the president’s tax cut and spending megabill, which would eliminate electric vehicle (EV) purchase subsidies. Musk threatened to start a new political party, named the America Party, and unseat lawmakers supporting the tax bill if it passed before the president fired back. President Trump told reporters in front of the White House today: “He’s [Musk] upset that he’s losing his EV mandate. He’s very upset about that, but, you know, he could lose a lot more than that.” After being asked whether he’d deport Musk, who is a naturalized U.S. citizen, Trump replied: “I don’t know. We’ll have to take a look. We might have to put DOGE [Department of Government Efficiency] on Elon.” Musk was the former head of DOGE, a government agency created to target and eliminate wasteful government spending.
In a post on X, formerly Twitter, Musk wrote: “If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.” Musk stated in another post: “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”
While the elimination of EV purchase tax credits would deal a significant blow to Tesla, which releases its Q2 results Wednesday, Musk’s escalating feud with Trump could endanger the expansion of Tesla’s new robotaxi rideshare service that hinges on state and federal autonomous vehicle regulation. While the Department of Transportation recently made it easier for companies to apply to manufacture self-driving vehicles without steering wheels or pedals, a design which Tesla’s upcoming autonomous Cybercab is slated to contain, Trump’s criticism of Musk could impact Tesla’s application.
Senate passes Trump’s ‘big, beautiful bill’
Senate Republicans narrowly passed President Trump’s sweeping bill Tuesday after Vice President J.D. Vance cast a tie-breaking vote. However, the bill faces challenges in passing the House of Representatives, where it needs approval before being signed into law by the president. GOP leaders are hurrying to get the bill to the president’s desk by July 4, and Republicans currently have a narrower majority in the Senate than in the House of Representatives. The Senate has proposed to kill consumer tax credits for EVs by the end of September. If the bill is signed into law, industry analysts predict a 72% drop in planned EV sales over the next decade, according to EVXL.
Final thoughts
Elon Musk doesn’t appear intimidated by Trump’s threats, which could pose serious consequences to Tesla and the entrepreneur’s other enterprises. On the Truth Social platform, Trump posted: “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. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” With Trump’s bill heading to the House of Representatives, the feud between the two could intensify as companies like Tesla grow closer to losing EV tax credits.
