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Trump Escalates Feud with Musk Over Subsidies
Tensions are flaring between **Donald Trump** and **Elon Musk** as the former president threatens to curtail government support for **Musk’s** ventures, igniting a fresh war of words between the two high-profile figures.
Trump’s Criticism and Musk’s Response
**Trump** attacked **Musk** on Truth Social, claiming he receives excessive subsidies and suggesting that without them, “Elon would probably have to close up shop and head back home to SA.”
He proposed scrutinizing the subsidies, hinting at potential savings for the country.
In response, **Musk** took to X, stating, “I am literally saying cut it all. Now.”
This exchange underscores the deepening rift between the two, marked by disagreements over government spending and regulatory policies.
Clash Over Tax and Spending Bill
**Trump** asserted that **Musk** was displeased about losing the EV mandate in the recent tax and spending bill, implying further financial repercussions for the Tesla CEO. Treasury Secretary **Scott Bessent** defended the bill, countering **Musk’s** concerns about its impact on the deficit by saying “I’ll take care of”
the country’s finances.
Earlier in June, **Trump** had threatened to cut **Musk’s** government contracts amidst a social media dispute over the tax-cut bill, which analysts estimate could add approximately $3 trillion to the national debt. For context, the U.S. national debt currently stands at over $34.6 trillion, according to the Treasury Department (U.S. Treasury Department, 2024).
Market Impact and Analyst Commentary
The escalating conflict previously led to a $150 billion decline in Tesla’s market value, fueled by investor anxieties about potential regulatory challenges for its self-driving robotaxi program. The stock rebounded somewhat after **Musk** softened his stance, admitting he had gone “too far.”
**Dennis Dick**, chief strategist at Stock Trader Network, observed that “Musk cannot stop himself. He is getting on Trump’s bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall too,”
further adding, “Musk needs Trump. Trump does not need Musk.”
Tesla’s Sales Performance
Recent data indicates that Tesla’s sales in Sweden and Denmark experienced a sixth consecutive month of decline in June. Analysts anticipate a decrease in the company’s second-quarter delivery figures, heightening concerns about its overall performance.
