Trump vs. Musk: A Battle of Billionaires Over Spending and Subsidies

In a surprising twist of events, former President Donald Trump has publicly clashed with billionaire entrepreneur Elon Musk, sparking heated exchanges that highlight their deteriorating relationship. This feud ignited following Musk’s outspoken criticism of Trump’s proposed budget bill, leading to sharp remarks from both sides.

Trump Threatens Musk with Investigations

Trump took to the White House lawn, threatening to unleash the newly established Department of Government Efficiency (DOGE) on Musk’s businesses, particularly SpaceX.

• Quote from Trump: “We might have to put DOGE on Elon, you know. He gets a lot of subsidies.”

The former president emphasized Musk’s reliance on government support, stating that without it, Musk might struggle to keep his businesses afloat, asserting, “Elon may get more subsidy than any human being in history, by far.”

Musk’s Retaliation: A Tempting Response

Musk, undeterred by Trump’s comments, responded on social media platform X, hinting at escalating the feud but deciding to refrain for the time being. His response underscores the growing tension, with Musk stating, “So tempting to escalate this… But I will refrain for now.”

Musk’s opposition to Trump’s agenda stems from his frustration over the proposed budget, which he believes poses a threat to the electric vehicle industry.

Key Concerns Raised by Musk

• Musk labeled Trump’s “Big, Beautiful Bill” a “disgusting abomination,” criticizing it for potentially raising the national debt to unsustainable levels.
• He warned lawmakers that they could face electoral consequences if they supported the bill, calling for accountability: “Every member of Congress who campaigned on reducing government spending… should hang their head in shame!”

The Root of the Fallout

When asked about the rift, Trump indicated Musk’s discontent over losing his electric vehicle mandate, suggesting that Musk’s frustrations run deeper than just budgetary matters.

• Trump’s Commentary: “He’s upset that he’s losing his EV mandate… But he could lose a lot more than that.”
• The former president expressed skepticism about the widespread desire for electric vehicles, highlighting his preference for a diverse set of automotive choices, from gasoline to hydrogen.

A Shift from Allies to Adversaries

This feud marks a stark contrast to the earlier camaraderie between Trump and Musk. Previously, Musk served as the head of DOGE and was instrumental in cutting government expenses. Their alliance once saw Trump award Musk a ceremonial gold key to the White House.

However, tensions escalated after Musk vocally opposed the budget bill that threatens to cut tax incentives crucial for Tesla’s success. The fallout began impacting Tesla’s stock, which saw a significant drop of 7.5% as markets reacted to the rising tensions.

Musk’s Political Aspirations

As the dispute escalates, Musk has even floated the idea of forming a new political party, dubbed the “America Party,” should Trump’s budget bill gain approval in Congress.

• Musk’s Warning: “If this insane spending bill passes, the America Party will be formed the next day.”

Current Status of the Budget Bill

The budget bill is currently under scrutiny in Congress, where Trump’s Republican Party holds a majority. The bill proposes increased funding allocated to:

• Border security
• Defense
• Energy projects

However, it also suggests cuts to vital social programs, including Medicare and food assistance, raising concerns among lawmakers and the public alike.

In this ongoing duel of words, the futures of both Trump and Musk remain closely linked to the outcomes of political and economic decisions. As tensions rise and strategies unfold, the battle between these two prominent figures is far from over.