Trump-Musk Rift: US President Donald Trump Wants DOGE To Review Tesla Subsidies, Elon Musk Says 'Cut It All'

The U.S President Donald Trump has suggested that the DOGE to review the subsidies offered to Tesla CEO Elon Musk's companies to save central administration's wealth.

This triggered another tit-for-tat between the world's richest indiviual and the leader world's top economy. 
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Trump's remarks came in after Musk critcised the sweeping tax-cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending.

In his Truth Social post, Trump said,"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.”

Tesla shares fell above 6 per cent before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric automaker, is betting on the success of robotaxis being tested in Texas.

The U.S. Transportation Department which regulates vehicle design is expected to play an integral role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm SpaceX has about USD 22 billion in federal contracts.

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"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 said in a Truth Social post, referring to the Department of Government Efficiency.

"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!!!"

In response, Musk tweeted, "I am literally saying CUT IT ALL. Now."

Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO "could lose a lot more than that".

Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $3 trillion to the U.S. debt.

The rift had resulted in Tesla shares erasing USD 150 billion in market value, as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation.

The stock recovered after Musk walked back some of his jabs, saying he had gone "too far".