DOGE should review Musk’s subsidies to save money, Trump suggests

U.S. President Donald Trump on Tuesday called for the government efficiency department to examine subsidies received by Elon Musk’s companies, escalating a public dispute with the Tesla chief executive over federal spending.

The comments came after Musk renewed criticism of Trump’s tax-cut and spending legislation on Monday, threatening to target lawmakers who supported the bill despite campaigning on spending restraint.

“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 on Truth Social. “Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”

Musk responded on X, stating: “I am literally saying CUT IT ALL. Now.”

The exchange marks the latest chapter in a volatile relationship between the two. Trump previously threatened to cut Musk’s government subsidies and contracts during a social media dispute in early June over legislation that non-partisan analysts estimate would add approximately $3 trillion to U.S. debt.

Musk’s business empire includes SpaceX, which holds about $22 billion in federal contracts, along with its Starlink satellite unit. Tesla shares fell 5% in Frankfurt trading on Tuesday.

The June conflict triggered significant market volatility for Tesla, with shares losing approximately $150 billion in market value on 5 June in the company’s largest single-day decline, though the stock has since recovered.

After weeks of relative quiet, Musk re-entered the spending debate on Saturday as the Senate considered the package, describing it as “utterly insane and destructive” on X. On Monday, he said lawmakers who campaigned on spending cuts but backed the bill “should hang their heads in shame” and threatened electoral consequences.

“And they will lose their primary next year if it is the last thing I do on this Earth,” Musk added.

The billionaire also called for a new political party, saying the legislation’s spending levels indicated “that we live in a one-party country – the PORKY PIG PARTY!!”

Musk’s criticism represents a significant shift after spending nearly $300 million supporting Trump’s re-election campaign and leading the administration’s Department of Government Efficiency (DOGE) cost-cutting initiative.

The Tesla chief executive has argued the legislation would substantially increase national debt and eliminate savings achieved through DOGE.