Trump Threatens Musk’s Subsidies Amid Spending Bill Dispute
- Trump warns of reevaluating Musk’s government subsidies for businesses.
- Musk slammed a spending bill, calling for a new political party if passed.
- Tesla shares fell by 6% amid the escalating feud between Trump and Musk.
- Both Musk’s SpaceX and Tesla benefit from substantial government contracts.
- The Senate is working through amendments before sending the bill back to the House.
Trump’s Warning About Musk’s Government Support Raises Eyebrows
In a notable turn of events, President Donald Trump has raised concerns over the financial support his administration offers to Elon Musk’s ventures. In a fervent Truth Social post written shortly after midnight, Trump unleashed a barrage of remarks, signalling that there could be ‘big money’ to be saved by re-examining Musk’s subsidies. He starkly suggested that without government backing, Musk’s operations in America might have to cease entirely; no more rockets, satellites, or electric cars, and all of that could end with a mere flick of the policy pen. This could supposedly result in significant savings for the nation in a time of unprecedented debt.
Musk Criticizes Fiscal Bill and Trump’s Allies
This latest skirmish marks a sharp divergence from their previously amicable relationship, where Musk even spent an estimated $250 million aiding Trump’s election campaign. Just hours before Trump’s post, Musk vehemently denounced the so-called “big, beautiful bill,” suggesting a new political party to be formed immediately if the legislation is passed, claiming that a fresh alternative is essential for the American people to truly have a voice. Further fuel was added to this heated exchange when Musk threatened lawmakers supporting the bill, stating they would face consequences in their primary elections. Musk’s critical tone was evident as he associated those lawmakers with dishonesty, calling them liars for supporting a significant increase in the national debt.
Market Response Reflects Tensions Between Musk and Trump
The fallout from this feud resonated in the market as well, with Tesla shares dropping by 6% prior to the market opening. So far this year, Tesla’s stock has dropped 21%, despite a recovery from spring lows, showcasing an ongoing volatility amid legislative pressures. While Musk backs away from government dealings — openly calling the bill a “massive, outrageous…pork-filled” proposal — Treasury Secretary Scott Bessent took a more measured stance. When asked for his thoughts, Bessent quickly moved the focus back to fiscal responsibility; he commended Musk’s achievements in rocketry while seemingly disregarding his political jabs. As maneuvering continues around the contentious bill, the Senate must navigate more amendments before the House votes again; the stakes and tensions continue to escalate, mirroring the tumultuous nature of this summer’s political landscape.
The feud between Trump and Musk has revealed significant rifts, straining their once-close relationship. Musk’s criticisms of the current fiscal measures indicate a growing unrest with government spending, while Trump’s threat to reassess subsidies hints at financial oversight intentions. As the legislative battle looms, the combined influence of these two powerful figures remains one to watch closely in the coming days.
