Trump Threatens to Turn DOGE on Musk’s Businesses in Battle over Record Spending
TEHRAN (Tasnim) – Donald Trump launched a fresh attack on Elon Musk, threatening to strip the billionaire of government support and force him to abandon his business interests in the United States, as their clash over record spending escalates.
Trump has declared he may dismantle the massive taxpayer subsidies sustaining Musk’s companies, accusing the tech mogul of hypocrisy over criticism of his administration’s spending plans.
Trump warned that Musk could be compelled to “close up shop and head back to South Africa,” claiming the billionaire’s ventures would collapse without US funds.
“Elon may get more subsidy than any human being in history,” Trump said.
“Without subsidies, no more rocket launches, satellites, or electric cars—and America would save a fortune.”
His comments followed Musk’s condemnation of Trump’s so-called “One Big, Beautiful Bill,” which would inject trillions into the budget and deepen the national debt.
Musk called the legislation “utterly insane and destructive,” arguing it would erase any fiscal gains from his former role leading the Department of Government Efficiency (DOGE).
He accused lawmakers of betraying promises to rein in spending and warned Republicans who backed the bill that they would face primary challenges.
“Anyone who campaigned on reducing spending but votes for the biggest debt ceiling increase in history will see their face on this poster,” Musk said, posting an image of Pinocchio burning.
Musk also threatened to launch a new party, the America Party, pledging its creation if the bill passes.
“Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a voice,” he wrote.
Longtime Trump ally Steve Bannon attacked Musk as disloyal for opposing the president’s agenda despite past financial support.
Musk, who funneled nearly $300 million into Trump’s reelection and AmericaPAC, has argued that Washington’s addiction to spending will bankrupt the country.
Libertarian Republicans such as Rand Paul have echoed Musk’s warnings.
Paul described the bill as “Biden spending levels” and “a terrible idea.”
Utah Senator Mike Lee, who has aligned with Musk in labeling the plan “debt slavery,” has also withheld support.
The feud has already rattled markets.
Tesla shares saw sharp swings that temporarily wiped out $150 billion of value before partially recovering.
Trump’s threat to revoke subsidies highlights the transactional nature of his alliances and underscores the fragility of Musk’s US operations if federal support is withdrawn.
