Former US President Donald Trump has called for a review of federal subsidies received by Elon Musk’s companies, reigniting a public feud with the billionaire entrepreneur and potentially jeopardising billions in government contracts.

Trump, posting on his social media platform Truth Social on Tuesday, suggested the Department of Government Efficiency (DOGE) investigate the level of taxpayer support Musk has received over the years, arguing that cutting it could lead to substantial savings.

“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,” Trump wrote. “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!!!”

The remarks came after Musk escalated his criticism of a sweeping tax-cut and spending bill currently before Congress, branding it “utterly insane and destructive”. Over the weekend, he vowed to unseat lawmakers who had supported the bill despite campaigning on reducing government expenditure.

“I am literally saying CUT IT ALL. Now,” Musk responded on his own platform, X.

Tesla shares fell nearly 5% in premarket trading following Trump’s post, reflecting investor concern over the growing rift. The feud could have wide-ranging implications for Musk’s businesses. 

The US Transportation Department, which regulates vehicle design, will be critical in approving Tesla’s plans to produce self-driving robotaxis without pedals or steering wheels. Meanwhile, SpaceX currently holds around $22 billion in federal contracts.

The clash is the latest episode in a turbulent relationship between the former president and the world’s richest man. In early June, Musk and Trump engaged in a public spat over the spending bill, with Trump threatening to cut government contracts. Tesla’s market value plunged by $150 billion in a single day amid the fallout, though the stock later recovered after Musk tempered his remarks.

However, the détente was short-lived. On Monday, Musk renewed his attack on the bill, writing: “Lawmakers who campaigned on cutting spending but backed this bill should hang their heads in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”

He also repeated his call for a new political movement, saying the bill’s massive spending demonstrated “that we live in a one-party country – the PORKY PIG PARTY!!”

Musk’s sharp criticism marks a notable shift, given that he previously donated nearly \$300 million to Trump’s re-election campaign and spearheaded the administration’s DOGE initiative, which aimed to streamline federal agencies.

The billionaire argues that the new legislation would undo any fiscal gains achieved through DOGE and substantially increase the national debt. While it is unclear how much influence Musk currently holds in Washington, his increasingly volatile relationship with Trump has alarmed Republican strategists, who fear it could damage their chances of retaining control of Congress in the 2026 midterm elections.

Boluwatife Enome

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