Trump threatens Tesla subsidies as Musk attacks President’s tax bill
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The news: US President Donald Trump threatened to withdraw US government subsidies from Elon Musk’s Tesla in order for the government to save money as the feud between the former allies intensifies.
The context: In a Truth Social post, Trump wrote that Musk “may get more subsidy than any human being in history, by far,” and that without the subsidies, he would have to shutter his business and “head back home to South Africa.”
Trump suggested that the department initially formed and headed by Musk, the Department of Government Efficiency (DOGE), should assess US funding for rocket launches, satellites and EV production as areas to save money.
Musk departed DOGE in late May when he began aggressively campaigning to kill Trump’s signature bill, prompting a war-of-words between the billionaire and President before Musk walked back some comments.
“Perhaps we should have DOGE take a good, hard look at this?” Trump said.
The President’s comments follow further criticisms levelled by Musk at Trump’s far-reaching tax and spending bill, which is currently being debated in the US Senate. Trump has set a date of 4 July for the bill’s passing.
Musk has been voicing his frustrations about the bill’s recent amendments this week after Senate Republicans released a new version of the legislation on Saturday which would speed up the elimination of the popular USD7,500 ($11,400) consumer tax credit for electric vehicle purchases.
Musk took to X to air his frustrations with the bill, stating: “If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”
Musk separately posted that his opposition to the bill is not based on the issue of subsidies which would impact sales of his EVs, adding “I am literally saying CUT IT ALL. Now.” The billionaire has been a loud advocate to reducing US government debt, arguing that Trump’s ‘big, beautiful bill’ would increase the country’s debt ceiling by USD5 trillion.
The numbers: Data released on Tuesday shows Tesla’s sales across Sweden and Denmark fell for a sixth consecutive month in June. The carmakers sales were down 64.4% and 61.6% in the 12 months to June in Sweden and Denmark respectively. Tesla’s Q2 deliveries are also expected to fall 8% in 2025, 11% year-on-year, reports Reuters.
