Elon Musk Would “Have to Shut Shop” Without EV Subsidies, Trump Claims

Elon Musk Would “Have to Shut Shop” Without EV Subsidies, Trump Claims

Former President Donald Trump has reignited his feud with billionaire Elon Musk, claiming that the Tesla and SpaceX CEO’s business empire would collapse without government subsidies. In a fiery post on Truth Social, Trump suggested that Musk would be forced to “close up shop and head back home to South Africa” if federal financial support were withdrawn.

The remarks come amid escalating tensions between the two high-profile figures, who were once political allies but have since clashed over policy, particularly on electric vehicle (EV) mandates and government spending.

Trump’s Blunt Warning: Musk’s Empire Relies on Subsidies

In his post, Trump doubled down on his long-standing opposition to EV mandates, calling them “ridiculous” and framing them as a key issue in his 2024 campaign.

“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,” Trump wrote.

He acknowledged that electric vehicles might work for some consumers but argued against forcing Americans to adopt them. Trump then took direct aim at Musk’s reliance on government subsidies, not just for Tesla but also for SpaceX and other ventures.

“Elon may get more subsidy than any human being in history, by far, and 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,” Trump added.

The former president’s comments highlight a growing divide between his economic policies and Musk’s vision for America’s energy and tech future.

A Once-Strong Alliance Now Fraying

Just a few years ago, Musk was one of Trump’s most vocal supporters, contributing heavily to his re-election campaign and even leading the short-lived Department of Government Efficiency (DOGE), a cost-cutting initiative. However, the relationship has soured over policy disagreements, particularly regarding government spending and EV adoption.

The latest flashpoint is Trump’s proposed “One Big, Beautiful Bill”, a sweeping legislative package that includes tax cuts, deregulation measures, and—most controversially—a rollback of EV subsidies. Musk has publicly slammed the bill, warning that it could balloon the national debt and undermine fiscal discipline.

Last week, Musk went as far as threatening to form a new “America Party” if the bill passes, signaling a potential third-party challenge to Trump’s influence.

“If this insane spending bill goes through, we might need a new political movement that actually puts America first,” Musk tweeted, prompting backlash from Trump loyalists.

The EV Subsidy Debate: A Key 2024 Battleground

Trump’s latest attack on Musk underscores his broader campaign against green energy subsidies, which he argues distort the free market. His stance resonates with his base, particularly in oil and gas states, but puts him at odds with tech leaders and environmental advocates.

Musk, meanwhile, has defended government support for EVs and renewable energy, arguing that early-stage industries often need incentives to compete with entrenched fossil fuel interests. Tesla benefited significantly from federal tax credits in its early years, and SpaceX has secured lucrative government contracts, including NASA funding and military satellite deals.

Critics of Trump’s position say that cutting subsidies now could stifle innovation and cede America’s lead in electric vehicles and space technology to China.

Musk’s Next Move: Political Ambitions?

With Musk openly criticizing Trump and floating the idea of a new political party, speculation is growing about his own ambitions. The billionaire has increasingly weighed in on hot-button issues, from free speech to immigration, and his social media platform, X (formerly Twitter), has become a hub for political discourse.

Some analysts suggest Musk could leverage his vast wealth and influence to back alternative candidates or even run for office himself—though he has denied any such plans.

For now, the feud between Trump and Musk shows no signs of cooling. As the Senate races to pass Trump’s spending bill before the July 4 deadline, the clash between two of America’s most powerful figures could reshape the political landscape ahead of the 2024 election.

What’s Next?

If Trump succeeds in slashing EV subsidies, Tesla and other automakers could face significant financial pressure. Meanwhile, Musk’s threat of a new political party could further fracture the conservative movement, creating an unpredictable dynamic in the coming election cycle.

One thing is clear: the battle between free-market purists and tech-driven industrial policy is far from over—and the Musk-Trump rift is just the latest front in that war.

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