President Donald Trump escalated his public feud with former ally Elon Musk on Tuesday, suggesting he would explore deporting the tech billionaire and weaponizing a government cost-cutting agency against Musk’s companies. The clash centers on Musk’s fierce opposition to Trump’s signature domestic policy legislation, the “Big Beautiful Bill,” which Musk argues will catastrophically increase the national deficit.
Deportation Remarks Ignite Firestorm
When asked by reporters at the White House whether he would deport Musk—a naturalized U.S. citizen born in South Africa—Trump responded: “I don’t know. We’ll have to take a look.” He added cryptically, “We might have to put DOGE on Elon,” referring to the Department of Government Efficiency (DOGE), which Musk led until late May. Trump described DOGE as “the monster that might have to go back and eat Elon”. Musk replied on his social media platform X: “So tempting to escalate this. So, so tempting. But I will refrain for now”.
Policy Dispute at the Core
The conflict reignited after Musk intensified criticism of the GOP-backed spending bill, calling it an “insane spending bill” that would “bankrupt America” by raising the debt ceiling by $5 trillion and adding an estimated $3.3 trillion to the national deficit over a decade. Musk threatened to fund primary challenges against Republican lawmakers supporting the bill and floated creating a new “America Party” as an alternative to the two-party system.
Subsidies in the Crosshairs
Trump retaliated early Tuesday on Truth Social, claiming Musk “may get more subsidy than any human being in history” and threatened to direct DOGE to scrutinize government support for Musk’s companies, including Tesla and SpaceX. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote. Analysts estimate Tesla alone could lose $1.2 billion annually if electric vehicle (EV) tax credits are eliminated, plus $2 billion from regulatory credit sales, key provisions targeted in Trump’s bill.
Market Fallout and Institutional Anxiety
Tesla shares plunged 7% Tuesday following Trump’s threats, extending a 21% year-to-date decline. Investors fear heightened regulatory scrutiny could cripple Musk’s government-dependent enterprises, particularly SpaceX, which relies heavily on federal contracts. Meanwhile, DOGE staff embedded across federal agencies reportedly fear becoming political collateral. “Current personnel worry their DOGE connection could make them vulnerable if tensions escalate,” an ABC News source noted, with some already seeking new jobs.
Third-Party Threat Looms
Musk’s pledge to form the “America Party” marks a direct challenge to Trump’s influence. “If this insane spending bill passes, the America Party will be formed the next day,” he declared. Though political analysts question its viability, the threat underscores Musk’s willingness to leverage his $275 million+ investment in Trump’s 2024 campaign against the president’s agenda.
A Fraught Alliance Unravels
The confrontation shatters a brief truce following a June feud where Musk accused Trump of ties to Jeffrey Epstein—a claim he later deleted. Their alliance, once hailed as a “bromance” between powerful figures, has deteriorated over fiscal philosophy and clean-energy incentives. “At the end of the day, being on Trump’s bad side will not turn out well,” Wedbush analyst Dan Ives warned.
The feud now imperils both policy priorities and market stability, revealing how personal rivalries can disrupt governance and industry alike. As the Senate debates the bill, Washington watches whether America’s wealthiest man or its most powerful will blink first.
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