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Trump and Musk Clash: A High-Stakes Battle Over Subsidies and Political Power

By Fortellr • July 1, 2025

In a fiery exchange that has captivated both political and business spheres, U.S. President Donald Trump has issued a stark warning to Elon Musk, the enigmatic billionaire behind Tesla and SpaceX. As tensions mount over government subsidies and political allegiances, Trump has suggested that without the financial backing of the American government, Musk might find himself returning to his South African roots.

The confrontation unfolded in a post on Truth Social, where Trump, never one to mince words, declared, "Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one." This statement underscores Trump's long-standing opposition to mandates promoting electric vehicles, a cornerstone of Musk's business empire.

Trump's rhetoric escalated as he accused Musk of being the recipient of unprecedented government support. "Elon may get more subsidy than any human being in history, by far," Trump asserted, painting a picture of Musk as reliant on federal aid. "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."

The U.S. President's remarks come amidst a backdrop of political maneuvering and economic policy debates. Trump's suggestion that the Department of Government Efficiency (DOGE), once helmed by Musk, should investigate the subsidies flowing to Musk's companies, adds another layer of intrigue. "Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!" Trump added, employing his characteristic bombast.

This clash follows Musk's public criticism of Trump's "big, beautiful bill," which Musk has labeled as "political suicide for the Republican Party." In a bold move, Musk has threatened to establish a new political entity, the America Party, should the bill pass in the U.S. Senate. "If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE," Musk proclaimed, signaling his willingness to disrupt the political status quo.

The stakes in this high-profile dispute are monumental, with implications for the future of American industry, politics, and the global economy. Musk's companies, including Tesla and SpaceX, are at the forefront of technological innovation, yet their dependence on government subsidies has become a focal point of contention.

This unfolding drama between two of the most influential figures of our time—Trump, a master of political theater, and Musk, a visionary entrepreneur—reflects broader tensions in American society. As the nation grapples with questions of economic policy, technological advancement, and political identity, the outcome of this confrontation could reverberate far beyond the immediate players involved.

In the end, the clash between Trump and Musk is not just about subsidies or political parties; it is a microcosm of the larger battle for the soul of America, where economic interests, political ideologies, and personal ambitions collide in a high-stakes game with global consequences.

🔮 Fortellr Predicts

Confidence: 80%

The unfolding confrontation between Donald Trump and Elon Musk is likely to catalyze distinct developments in political landscapes, technology sectors, and market dynamics. Initially, Trump's aggressive rhetoric regarding government subsidies could trigger increased scrutiny on financial interactions between Musk's enterprises and federal support programs. This scrutiny may be amplified by Trump's suggestion for DOGE to audit such arrangements, potentially leading to policy proposals aimed at curtailing subsidies. Musk's indicated response, if the spending bill passes, involves the creation of the America Party, introducing potential shifts in political affiliations and voter dynamics, particularly attracting libertarian and industry-focused individuals dissatisfied with current bipartisan politics. This political recalibration might lead to unforeseen alliances as both Trump and Musk seek to consolidate their influence, with Musk potentially leveraging his considerable social media presence to rally support. The technological and market sectors associated with Musk could experience volatility as investor sentiment weighs the potential political upheaval against innovations from Tesla and SpaceX. Long-term effects depend on whether the emergent America Party gains traction or influences policy shifts to better align with Musk's vision for sustainable technology and infrastructure reforms.