Billionaire entrepreneur Elon Musk’s feud with US President Donald Trump is escalating, putting billions in government contracts for his companies, including Tesla and SpaceX, at risk.
Musk, who once aligned himself with Trump, reignited their rivalry by publicly criticising the president’s massive spending and tax cut bill, which passed the Senate on Tuesday. The legislation slashes green energy incentives — a key revenue stream for Musk's businesses.
Trump fired back, warning that Musk’s outspoken opposition could cost him dearly. Speaking to reporters, Trump said Musk’s own creation, the Department of Government Efficiency (DOGE), might “turn on its creator.” He also hinted at the possibility of revoking Musk's US citizenship, saying, “We’ll have to take a look.”
On social media, Trump suggested Musk could be forced to shut down operations and “head back to South Africa,” where he was born. Musk, now a US citizen, responded cautiously, saying it was “tempting to escalate this” but he would hold off for now.
The fallout has already rattled Tesla's stock, which fell 5.3% on Tuesday, and raised concerns over SpaceX’s lucrative NASA contracts, including next year’s planned moon mission.
Musk’s criticism of Trump’s legislation included threats to unseat lawmakers who supported it, labelling Republicans the “PORKY PIG PARTY” and hinting at forming his own political party.
War of words over big bill intensifies between Musk, Trump
Trump, in turn, accused Musk of being motivated by financial self-interest, noting Tesla’s reliance on subsidies. He claimed without government support, Musk “would probably have to close up shop.”
The timing is critical for Musk. Tesla faces weak sales, particularly in Europe, and regulatory scrutiny of its new self-driving “robotaxi” service in Austin, Texas. US safety authorities have raised concerns after footage showed the driverless cars behaving erratically.
Analysts say Musk's political battles have alienated both sides of the political divide, risking his reputation and business prospects. "It seems impossible, but he’s actually done it," said Dan Ives of Wedbush Securities.
Source: Agency