Trump Targets Elon Musk Over Subsidies, Threatens to Cut Off Federal Support to Tesla and SpaceX

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Trump Warns Musk Could ‘Return to Africa’ Without U.S. Subsidies

In a sharp political jab, U.S. President Donald Trump has accused Tesla and SpaceX CEO Elon Musk of relying heavily on government subsidies, warning that without them, Musk might have to “shut down his company and return to South Africa.” Trump’s remarks came during a campaign-style speech on Tuesday, reigniting his ongoing feud with the tech billionaire.

The Republican leader claimed that if federal support is withdrawn, Tesla would be unable to continue producing electric vehicles and SpaceX would no longer be able to launch satellites. “Musk has received more taxpayer money than anyone else in America,” Trump declared, urging the Department of Government Efficiency (DoGE) to conduct a detailed investigation into the financial support given to Musk’s ventures. “It will save the nation a fortune,” he said.


Federal Funding Fueling Musk’s Empire: $3.7 Trillion Over Two Decades

According to public data and media estimates, Musk’s companies have benefitted from approximately ₹31 lakh crore (over $3.7 trillion) in government assistance over the past 20 years. Highlights include:

  • A $465 million loan from the U.S. Department of Energy to help Tesla launch its Model S.
  • $1.3 billion in tax breaks from Nevada in 2014 for Tesla’s Gigafactory.
  • A $7,500 tax credit per electric vehicle for Tesla buyers.
  • Over $2 trillion in government contracts to SpaceX since 2008.
    • $1.5 trillion from NASA, including a $3 billion lunar mission contract under the Artemis program in 2021.
    • $450 billion from the U.S. Department of Defense.
    • $843 million contract in 2024 to de-orbit the International Space Station.
    • Annual contracts worth ₹8,000 crore to ₹32,000 crore ($1B-$4B) between 2015 and 2024.

Musk Slams Trump’s ‘Big Beautiful Bill’ as Economic Disaster

Tensions escalated after Musk publicly criticized Trump’s proposed ‘Big Beautiful Bill’, calling it “madness” and “strategically disastrous.” Posting on X (formerly Twitter), Musk warned the legislation would destroy millions of American jobs and cripple the nation’s future industries.

“This bill protects outdated industries while killing the innovative ones,” Musk stated. He recently resigned from a top advisory role in Trump’s Government Efficiency Department, citing fundamental disagreements over the bill’s direction.


Senate Advances Trump’s Spending Bill Amid Growing Backlash

Despite opposition, the U.S. Senate approved Trump’s Big Beautiful Bill for floor debate, with a narrow 51-49 vote late Saturday. Two Republican senators voted against it, and Vice President JD Vance was present in case of a tie. Trump aims to pass the bill before July 4, pushing it as a measure to cut taxes and reduce spending.

Trump touts the bill as “patriotic,” arguing it will reduce America’s dependence on China and boost domestic investment. Musk, however, calls it a “pork-filled” disaster that could derail America’s innovation economy.


Trump vs Musk: A Political Feud Escalates Over Electric Vehicle Mandates

The clash intensified earlier in June when Trump voiced frustration with Musk’s criticism of his EV policy rollback. “I’m very disappointed in Elon,” Trump said. “I’ve done so much for him.” Musk fired back on social media, labeling Trump “ungrateful” and claiming his support helped Trump win the last election.

Their public feud continued across platforms, with Trump posting on Truth Social, accusing Musk of losing control when the EV mandate was repealed, and threatening to eliminate all federal support for his companies.

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