New Delhi | July 1, 2025 | Trump Musk subsidies debate: Elon Musk was well aware—long before he publicly endorsed me for President—that I opposed the electric vehicle (EV) mandate. While electric cars have their place, I believe people shouldn’t be forced to buy them.
Elon has likely received more government subsidies than anyone in history, and without them, his ventures—like SpaceX, Starlink, and Tesla—might not be sustainable. Eliminating these subsidies could potentially save the country a significant amount of money. Maybe it’s time for a closer review of this situation. There’s big money at stak.
President Donald Trump has launched fresh attacks against Elon Musk, alleging his companies survive solely through government subsidies. On Truth Social, Trump claimed Tesla and SpaceX would collapse without taxpayer support. “He’d probably have to close up shop,” Trump stated, suggesting Musk might return to South Africa.
These remarks reignite their long-standing feud about electric vehicle mandates and federal spending. Trump emphasized his consistent opposition to EV policies, calling current mandates “ridiculous.” His comments arrive days after Musk criticized a Republican-backed spending bill as “nonsense.”
Trump Musk subsidies debate: Breaking Updates
• White House considers revising EV tax credit eligibility
• SpaceX wins new $1.8 billion defense contract
• Tesla stock shows 5% drop following Trump remarks
The Billion-Dollar Subsidy Controversy
Trump asserted Musk receives unprecedented government support, calling for a Department of Government Expenditure investigation. Key points in their clash include: Musk threatening to form new “America Party” over spending disputes, Trump claiming subsidy cuts could halt rockets, satellites, and EV production, and Both figures influencing GOP policy directions.
Industry analysts note Tesla has benefited from $3 billion in federal and state incentives since 2007. However, SpaceX’s government contracts differ as paid services rather than direct subsidies.
Political and Industrial Ramifications
This public spat highlights deeper divides in American economic policy. Trump maintains EVs should remain optional, not mandated. Meanwhile, Musk’s companies rely on green energy incentives supporting technological innovation.
The confrontation could impact:
Pending legislation on clean energy tax credits
NASA’s partnership with SpaceX
Stock market confidence in Musk’s ventures
Latest filings show Tesla’s subsidy dependence dropped to 1.2% of revenue last quarter, complicating Trump’s claims. Trump even suggested that the Department of Government Expenditure (DOGE) should investigate. He proposed they take “a good, hard look” at Musk’s companies.
This would scrutinize the amount of subsidies received. He believes “BIG MONEY TO BE SAVED!!!” This call for an audit suggests a serious intent. It indicates a desire to re-evaluate federal spending policies. The ongoing dispute between Trump and Musk has drawn significant attention. It highlights divergent views on economic policy and the future of technology.
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