Trump: Without subsidies, Elon would probably have to head back to South Africa

A once-close alliance between Elon Musk and President Donald Trump has unraveled into a public feud, with the world’s richest man threatening to turn his fortune and influence against Trump’s legislative agenda, and possibly the Republican Party itself.

Musk, who served briefly as head of the Department of Government Efficiency (DOGE) during Trump’s return to the White House earlier this year, has become a vocal critic of the president’s flagship spending plan, the so-called “One Big Beautiful Bill.” He now says he is considering launching a new political party to challenge Republicans who back the controversial measure.

The bill, which proposes extending Trump-era tax cuts while slashing clean energy support and social programs, has drawn criticism from across the political spectrum. But Musk’s opposition has been particularly aggressive, warning that the legislation will balloon the national deficit and undermine the future of America’s electric vehicle industry.

“All I'm asking is that we don't bankrupt America,” Musk posted on his X platform Tuesday, accusing Republican lawmakers of betraying their fiscal promises and supporting what he called “debt slavery.”

Trump lashes out

Trump fired back sharply while touring a newly opened migrant detention facility in Florida, nicknamed “Alligator Alcatraz” by critics, when asked whether he would consider deporting Musk, who has been a US citizen since 2002.

“We’ll have to take a look,” he told reporters, in what appeared to be a not-so-veiled threat.

Trump also hinted at targeting Musk’s business interests, specifically the billions of dollars in federal contracts awarded to SpaceX and Starlink. “We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon,” he quipped.

Later, speaking in Florida, Trump added, “I don’t think he should be playing that game with me.”

In response, Musk posted on X, “So tempting to escalate this. So, so tempting. But I will refrain for now.”

Still, the standoff had immediate consequences, Tesla shares dropped roughly 5 percent on Tuesday following Trump’s comments.

From allies to adversaries

The rift marks a dramatic turnaround from earlier this year, when Musk and Trump were seemingly inseparable. The two appeared frequently together, often sporting MAGA hats, and Trump praised Tesla even as some criticized Musk’s cost-cutting measures during his brief tenure at DOGE.

But tensions exploded in May after Musk publicly opposed the spending bill and resigned from his government role. Since then, Musk has mounted a relentless campaign against the legislation, warning that it jeopardizes both America's fiscal future and its leadership in clean energy innovation.

According to Musk, his falling out with Trump stemmed in part from the bill’s removal of electric vehicle subsidies, something he claims was a retaliatory move.

“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote on his Truth Social platform Monday.