Trump suggests DOGE look at Musk subsidies to save money as rift widens over spending bill

Not everyone should be forced to own electric car: Donald Trump hits back at Elon Musk

US President Donald Trump on July 1 suggested the Department of Government Efficiency (DOGE) to take a "good, hard look" into cutting the subsidies being offered to  billionaire Elon Musk’s companies in order to save federal government’s money. This comes hours after Musk targeted nearly every sitting Republican in Congress who has signaled support for Trump’s multi-trillion dollar tax bill.

"Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!" said Donald Trump on his Truth Social account.

In a social media post on X platform, he said the lawmakers should “hang their head in shame”. He also called for “a new political party that actually cares about the people”.

After weeks of relative silence following a feud with Trump over the legislation, Musk rejoined the debate on Saturday (June 28) as the Senate took up the package.

Musk's criticism of the bill has caused a rift in his relationship with Trump, marking a dramatic shift after the tech billionaire spent nearly $300 million on Trump's re-election campaign and led the administration's controversial Department of Government Efficiency (DOGE), a federal cost-cutting initiative.

The Tesla and SpaceX CEO called again for a new political party, saying the bill's massive spending indicated "that we live in a one-party country – the PORKY PIG PARTY!!"

"Time for a new political party that actually cares about the people," he wrote.

Musk, the world's richest man, has argued that the legislation would greatly increase the national debt and erase the savings he says he has achieved through DOGE.

It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.

The rift has also led to volatility for Tesla, with shares of the company seeing wild price swings that erased approximately $150 billion of its market value, though it has since recovered.