Updated 1 July 2025 at 21:20 IST
Washington: The billionaire battle royale between Elon Musk and Donald Trump has reached new heights. The Tesla CEO and US President have been embroiled in a heated feud over the ‘One Big Beautiful Bill’, a sweeping tax and spending package championed by Trump. The bill claimed to aim at extending Trump's 2017 tax cuts, increasing defence and border security spending, and eliminating federal tax credits for electric vehicle purchases, among other provisions.
After Musk's criticism of the bill, Trump threatened to cut government subsidies to his companies, saying, "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." Responding to the threat, the SpaceX founder responded by saying Trump should follow through on his threat and cut the subsidies, adding, "I am literally saying CUT IT ALL. Now."
Amid increasing feud between the two, Elon Musk also reacted to Donald Trump's threat, saying, “So tempting to escalate this. So, so tempting. But I will refrain for now."
The feud between Musk and Trump has been escalating over the past few weeks, with both men trading insults on social media. Musk has been a vocal critic of the ‘One Big Beautiful Bill’, calling it a "disgusting abomination" and a "massive, outrageous, pork-filled Congressional spending bill" that would increase the deficit to $2.5 trillion and saddle Americans with “crushingly unsustainable debt”.
Earlier, Musk pushed for a new political party, which he calls ‘The America Party’. He stated that if the "insane spending bill" passes, the party will be formed the next day. His comments come after he launched a poll asking X users if the country needs a new faction for political nominees. With 80% of respondents agreeing, the billionaire believes a new party is necessary to represent the majority.
US President Trump has responded to Musk's new political party push, saying he is open to moving the July 4 deadline for Republicans to get behind the bill. However, he asserted that it would be wise for Republicans to get on board with the legislation. Trump also blasted Elon Musk over electric vehicle subsidies, suggesting cuts to save taxpayer money. "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," the US President asserted to which, Musk responded by saying Trump should follow through on his threat and cut the subsidies immediately.
The feud has taken a deeply personal turn, with both men trading insults on social media. Donald Trump accused Elon Musk of developing "Trump Derangement Syndrome" after leaving the Department of Government Efficiency (DOGE), suggesting that the Tesla CEO "misses the place" and was upset about the EV mandate cuts. Musk responded by alleging that Trump is mentioned in the sealed Jeffrey Epstein files, implying the former president's administration had suppressed their release.
The bill's estimated cost is $4.5 trillion, with potential implications for the federal deficit and the US economy.
Published 1 July 2025 at 19:44 IST