Trump Attacks Elon Musk: "If It Were Not for Subsidies, Musk Would Have to Go Back to South Africa"

President Donald Trump has rekindled the public feud with tech billionaire Elon Musk by sharply criticizing green energy subsidies and the nationwide push for electric vehicles. In a post on X on July 1, Trump claimed that Musk's success is entirely dependent on government support, an accusation that comes amid new spending legislation proposed by the Republican party that threatens to cut those subsidies. What is the Focus of the Dispute? In his post, President Trump accused Elon Musk of receiving more subsidies than any other individual in U.S. history, claiming that these funds helped companies like Tesla and SpaceX to survive. Without them, Trump declared, Musk "would probably have to close shop and return to South Africa." He has expressed opposition to the transition to electric vehicles as a longstanding part of his political platform, stating that while electric vehicles are good, the choice to own an electric vehicle should not be mandatory. He even humorously suggested that "DOGE"—a reference to the Government Efficiency Office that Musk briefly consulted—should investigate this issue to uncover hidden savings.

How Did Elon Musk React? Elon Musk provided a response that was both restrained and straightforward. He posted a neutral emoticon and a chart tracking the national debt of the United States from 1900 to 2020. The chart shows a sharp increase in federal debt, peaking at over 25 trillion dollars. On the chart, Musk wrote: "WHEN WILL THEY FLATTEN THIS CURVE?" This response seems to question Trump's economic credibility rather than directly addressing the complaints about subsidies. Musk has harshly criticized this bill, warning that certain provisions could harm the clean energy industry. The Senate version of the bill aims to eliminate the $7,500 EV tax credit, a program that played a crucial role in driving Tesla's early growth. Following news of the escalating infighting, Tesla's stock dropped more than 5% in pre-market trading in Europe as investors worried about potential consequences.