Key Insights
- Trump says Musk risks losing far more than EV subsidies.
- President threatens to end Tesla, SpaceX government contracts swiftly.
- Clash escalates amid feud over EV incentives and spending bill.
Make no mistake: Elon Musk could pay a huge price other than relinquishing electric vehicle subsidies, says U.S. President Donald Trump. The comments follow an ongoing rift between the two men on how and whether to use clean energy and federal incentives.
Musk has been repeatedly critical of the spending bill set out by Trump, including in his EV credits cuts, and Trump responded to him. The new menace indicates a growing rift that may go both financial and political in Musk business empire.
Trump Hints That Elon Musk May Lose Electric Vehicle Subsidies
During a recent event, Trump threatened that Elon Musk would lose more than he could imagine in electric vehicle tax credits in case he kept opposing Republican bills.
Trump described Musk as the “biggest subsidy taker in U.S. history” and hinted that future government contracts with Tesla and SpaceX may be at risk if tensions continue.
The bill previously proposed by the former president, which has been publicly criticised by Musk, is aiming to “clean up the mess” of overspending and “wasteful green incentives.” Earlier, Musk had criticized the bill to reduce the $7,500 federal EV credit, citing that it is a political stunt that penalizes innovation.
In retaliation, Trump went a notch higher. “The government assists Elon more than any other person. He had better think twice about biting the hand that feeds him,” he said.
There was a hint in his voice that, should he be re-elected, his administration would review the current contracts and subsidies awarded to companies belonging to Musk.
Elon Musk Responds Quickly as Tesla Stock Feels Pressure
Within a few hours, Elon Musk reacted to the comments of Trump through his X (formerly Twitter) account. In a widely noticed tweet,
Musk stated, “Cut it all. I really do not care anymore.”
The quote was more of a rebellious move, with Musk arguing that Tesla did not require government help to succeed. He also indicated that he would object to any legislators who backed the Trump spending plan in future elections.
Elon Musk tweeted on X, “So tempting to escalate this. So, so tempting. But I will refrain for now.”
However, even though Musk sounded so confident, the market acted quickly. Early trading saw Tesla stock drop over 6%, as the analysts were concerned with political uncertainty and the uncertainty of future governmental support.
Other critics had warned that the rhetoric would hurt the long-term growth of Tesla at a time when rivals are getting state incentives to establish operations in Europe and Asia.
SpaceX Faces Political Scrutiny
SpaceX, though privately held, also stood in the spotlight.
The firm relies on major U.S. government contracts from NASA and the Department of Defense. A policy shift under a Trump administration could threaten its launch schedule and revenue pipeline.
While Musk has increasingly taken public political stances, critics argued that alienating federal allies could hurt both Tesla’s and SpaceX’s growth trajectory.
U.S. Clean Tech Policy Caught in Crossfire
The clash between Trump and Musk has evolved into more than a personal feud.
Trump’s push to cut EV incentives reflects a broader Republican stance that questions the role of subsidies in clean energy.
Meanwhile, Musk despite rejecting the need for federal support—remains a major beneficiary of green incentives that helped build Tesla’s dominance.
Supporters of Trump argue EV credits benefit the wealthy and strain federal resources. In contrast, pro-innovation advocates warn that withdrawing support will hinder progress and allow foreign rivals to gain an edge.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
The post Trump Escalates Clash With Elon Musk, Threatens to Strip Tesla and SpaceX Subsidies appeared first on The Market Periodical.
