Deportation Hint and DOGE Retaliation
President Donald Trump suggested he might explore deporting Elon Musk, a naturalized U.S. citizen born in South Africa, telling reporters, "I don’t know. We’ll have to take a look". He simultaneously threatened to weaponize the Department of Government Efficiency (DOGE), which Musk formerly led, against Tesla and SpaceX. Trump branded DOGE as "the monster that might have to go back and eat Elon," vowing to scrutinize billions in federal subsidies supporting Musk’s companies. He claimed removing these would force Musk to "close up shop and head back to South Africa".
Trump accused Musk of opposing his $3.3 trillion tax and spending bill solely due to its elimination of electric vehicle (EV) subsidies, which benefit Tesla. "He’s losing his EV mandate... he could lose a lot more," Trump warned. Musk, however, insists his criticism targets the bill’s fiscal recklessness, calling it a "disgusting abomination" that would inflate the U.S. deficit by $2.4–$3.3 trillion. He has urged Americans to "kill the bill" and threatened to unseat supporting lawmakers in 2026 primaries.
Tesla shares tumbled 7.7% following Trump’s threats, extending losses amid fears of revoked contracts and subsidies. Analysts warn Tesla could lose $1.2 billion annually without EV tax credits, while SpaceX faces risk to its $22 billion in government contracts. Musk has countered by demanding across-the-board subsidy cuts: "I am literally saying CUT IT ALL. Now". He also proposed launching the "America Party" as an alternative to Republicans and Democrats. He endorsed dissenting GOP Rep. Thomas Massie, whom Trump called "a very bad guy".
The clash marks a collapse of their once-close alliance. Musk donated $275 million to Trump’s 2024 campaign and led DOGE’s cost-cutting initiative before resigning in May. Tensions erupted in June when Musk alleged Trump’s name appeared in Epstein-related documents, a claim he later deleted and Trump mocked Musk’s "black eye" and accused him of self-interest. Despite Musk’s brief de-escalation, the feud reignited as the spending bill advanced, exposing irreconcilable fiscal priorities.