July 1, 2025 — The already tense relationship between Donald Trump and Elon Musk just got a whole lot hotter.
In a bold—and very public—move, Trump threatened to pull the plug on billions of dollars in federal subsidies and government contracts supporting Musk’s companies, including Tesla, SpaceX, and Starlink. And he didn’t mince words.
“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump posted on Truth Social.
Yikes. That’s a serious threat—and not just personal. If followed through, this could shake up the U.S. clean energy and space industries in a big way.
What’s Actually at Stake?
Let’s break it down:
🔹 Tesla gets a boost from EV tax credits and sells billions in regulatory credits. In 2024 alone, that added up to $2.8 billion in revenue.
🔹 SpaceX, Musk’s crown jewel, has received over $20 billion in federal contracts since 2008—including from NASA and the Pentagon.
🔹 Starlink, SpaceX’s satellite internet project, has its own slice of government deals—estimated to be worth up to $14 billion in coming years.
All in all, experts estimate that Musk’s empire could lose up to $48 billion over the next decade if these supports vanish.
Market Reaction? Instant.
Wall Street didn’t take Trump’s threats lightly. Tesla stock nosedived, dropping over 14% in a single day, and Elon Musk personally lost billions as a result. Investors fear that if these subsidies and contracts are cut, it could cripple Musk’s most ambitious projects—especially in the electric vehicle and space sectors.
Musk, of course, fired back on X (formerly Twitter):
“Go ahead, make my day.”
He even suggested he might begin shutting down the Dragon spacecraft program—though he quickly dialed that back. Still, the message was clear: he’s not backing down.
Why Now?
The feud ties directly into Trump’s proposed “One Big Beautiful Bill”—a sweeping tax and spending package that includes major cuts to clean energy initiatives. Musk has loudly opposed the bill, calling it a “disgusting abomination,” and hinting he may even start a new political party in response.
In retaliation, Trump is using Musk’s reliance on federal dollars as a political cudgel—urging lawmakers to cut ties with Musk’s ventures entirely.
The Bigger Picture
This isn’t just a personal spat. This feud could reshape some of the most important sectors in the U.S.—from renewable energy to aerospace.
Meanwhile, Jeff Bezos and Blue Origin are quietly watching from the sidelines... and reportedly making moves to pick up any government contracts Musk might lose. The rivalry between Musk and Bezos could suddenly gain a whole new chapter.
What Happens Next?
The Senate is expected to vote on Trump’s spending bill around July 4. That vote could determine the fate of Tesla’s EV tax credits, as well as broader federal support for SpaceX and Starlink.
If the bill passes—or if Trump wins more influence over federal agencies—we could see major contracts canceled or redirected. Either way, it’s clear this feud isn’t going away anytime soon.
Final Thoughts
The Trump–Musk feud is more than just another billionaire beef. It’s a high-stakes political drama that could reshape U.S. innovation, government spending, and even the future of space exploration.
Stay tuned—because this story is still unfolding.
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