The public feud between former US President Donald Trump and billionaire entrepreneur Elon Musk has reignited, escalating into a bitter exchange that threatens billions in government contracts and carries significant political implications. The latest flare-up centers on Musk's vocal opposition to a sweeping tax-cut and spending bill currently before Congress, which Trump has dubbed "One Big Beautiful Bill."

On Tuesday, Trump took to his social media platform, Truth Social, to suggest that the Department of Government Efficiency (DOGE) should investigate the substantial taxpayer support Musk's companies have received. Trump argued that cutting these subsidies could lead to "a FORTUNE" in savings for the country, stating, "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." He added that this would mean "No more rocket launches, satellites, or electric car production." When questioned by reporters at the White House on July 1, Trump even hinted at the possibility of deporting the South African-born CEO, saying, "I don't know… we’ll have to take a look" and later, "We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon."

Trump explicitly linked Musk's criticism of the spending bill to the billionaire's perceived annoyance over the legislation's potential to eliminate consumer tax credits for electric vehicle purchases, which have previously benefited Musk’s companies. "He's losing his EV mandate. He's very upset about things," Trump claimed, warning, "Elon can lose a lot more than that."

Musk, for his part, has branded the bill "utterly insane and destructive," accusing Republicans of abandoning efforts to lead the US in EV and clean energy revolution and supporting "debt slavery." He has repeatedly called for drastic spending cuts, stating, "I am literally saying CUT IT ALL. Now." Musk, who previously donated nearly $300 million to Trump’s re-election campaign and briefly headed the DOGE initiative aimed at streamlining federal agencies, argues that the new legislation would undo any fiscal gains achieved through DOGE and substantially increase the national debt. He denies opposing the bill solely to protect subsidies for his ventures.

The tech magnate has vowed to unseat lawmakers who campaigned on reducing government expenditure but supported the bill, pledging, "they will lose their primary next year if it is the last thing I do on this Earth." He has also renewed his call for a new political movement, suggesting the formation of an "America Party" to challenge what he termed the "PORKY PIG PARTY!!" that demonstrates a "one-party country." In response to Trump's deportation comments, Musk cryptically replied on X, "So tempting to escalate this. So, so tempting. But I will refrain for now."

The escalating rift has already had tangible effects. Tesla shares plummeted nearly 5% in premarket trading and over 6% early Tuesday following Trump's threats, reflecting significant investor concern. The feud could have wide-ranging implications for Musk's businesses, including SpaceX, which holds around $22 billion in federal contracts, and Tesla's plans for self-driving robotaxis, which require approval from the US Transportation Department. Republican strategists are reportedly alarmed by Musk's increasingly volatile relationship with Trump, fearing it could damage their chances of retaining control of Congress in the 2026 midterm elections. This public blow-up is the latest in a turbulent relationship, which saw a previous acrimonious falling out in May over the same spending bill, causing Tesla's market value to plunge by $150 billion in a single day before a brief détente. However, Musk's renewed attacks have reignited tensions, underscoring the deep ideological divide now separating the former allies.