Tesla Stock Falls as Trump Threatens to Cut Musk's Subsidies and Deport the CEO

TMTPOST -- Tesla Inc. stock fell as much as 7.7% and finished 53% lower on Tuesday as the feud between CEO Elon Musk and U.S. President Donald Trump over Trump’s “Big, Beautiful Bill” (OBBB) blew up again.

Credit：Xinhua News Agency

Musk on Monday posted a series of messages on his social media platform X to criticize the OBBB, casting the Republicans’ tax-cut and spending bill as a “DEBT SLAVERY bill”, and he even issued a severe warning against Republicans in Congress who voted for the bill.

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote in a series of posts on his social media site, X. “And they will lose their primary next year if it is the last thing I do on this Earth,” he added. Musk called for “a new political party that actually cares about people”, and declared “the American Party will be formed the next day” if the “insane spending bill passes.”

Trump hit back against Musk in a post on his Truth Social platform, threatening to cut the subsidies Musk obtained from the federal government. “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. 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!!!” Trump wrote in the social media post.

DOGE refers to Department of Government Efficiency, the newly established initiative overseeing bureaucratic corruption and reducing the national debt for the second Trump administration. DOGE's work led to thousands of federal government layoffs and cuts of billions of dollars in foreign aid and other programs, sparking multiple protests in the United States and around the world. Musk led DOGE early in Trump’s administration and announced his departure late May.

Trump reiterated his threat on Tuesday. He told reporters at the White House that Musk felt upset that the electric vehicle (EV) mandate is going to be terminated by the administration, while “he can lose a lot more than that.” “I think what’s going to happen is DOGE is going to look at Musk. And if DOGE looks at Musk, we’re going to save a fortune. ... I don’t think he should be playing that game with me,” Trump said.

Trump also compared DOGE to a monster “that might have to go back and eat Elon.” Asked if he was considering deporting Musk to his native South Africa, Trump said “I don’t know, we’ll have to take a look.”

Musk responded to a screenshot of Trump’s post about directing DOGE to look at his subsidies with “I’m literally saying CUT IT ALL. Now. ” In response to Trump’s considering deportation, Musk replied a video of the statement on X, saying “so tempting to escalate this. So, so tempting. But I will refrain fro now.” In another post, Musk said claiming “the crux” of the OBBB is “Removal of funding for enforcement of federal contempt of court orders.” “This is nominally aimed at removal of illegal immigrants, but obviously also enables many other abuses of power by the President,” the billionaire added.