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Tensions Rise: Donald Trump Threatens Action Against Elon Musk Over Spending Bill Criticism

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On: Wednesday, July 2, 2025 5:46 PM
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Washington D.C., July 2, 2025 —

A fresh political storm has erupted in the United States after former President Donald Trump issued pointed threats toward tech billionaire Elon Musk, following Musk’s outspoken criticism of Trump’s proposed $4 trillion tax and spending bill.

Trump also hints at removing Tesla and SpaceX subsidies and suggests deportation, while Elon Musk responds with restraint and a veiled warning.

The public exchange has brought to light rising tensions between two of America’s most high-profile figures—one a political titan, the other a tech visionary. The dispute has now sparked a wider conversation about free speech, political retaliation, and the future of government subsidies for private enterprise.

The controversy began when Elon Musk described Trump’s spending bill as “insane”, warning that the proposal would significantly raise the U.S. national debt and potentially harm the economy. Reacting strongly, Trump retaliated in a press interaction, calling Musk “ungrateful” and accusing him of benefiting more from U.S. government subsidies than any other individual or company.

“We might have to put DOGE on Elon,”

Trump remarked, referencing the fictional Department of Government Efficiency (DOGE)—a symbolic agency often mentioned in Trump’s speeches. He further suggested that Tesla and SpaceX’s federal subsidies could be reviewed or removed, saying,

“No more rocket launches, no more electric cars.”

Trump also posted on Truth Social, writing,

“If it weren’t for taxpayer money, Musk would have to close up shop. Time to stop giving freebies to billionaires who bite the hand that feeds them.”

In a comment that raised both legal and ethical concerns, Trump hinted that Musk should be deported back to South Africa, his country of birth.

“Maybe it’s time Elon goes back to where he came from,” Trump said, referencing South Africa. “We’ll see how many rockets he can launch from there.”

However, legal experts and immigration authorities quickly pointed out that Elon Musk has been a naturalized U.S. citizen since 2002, making any deportation legally impossible unless his citizenship is revoked, which can only occur through a complex and rare denaturalization process—typically reserved for severe criminal conduct or fraud.

Known for his candid social media presence, Elon Musk responded in a measured tone, posting on X (formerly Twitter):

“So tempting to escalate this. So, so tempting. But I will refrain for now.”

While the response appears restrained, analysts suggest it carries a veiled warning, signaling that Musk could leverage his influence and resources if the conflict escalates.

Notably, Musk and Trump were once on friendly terms. Musk had donated to Trump’s previous presidential campaign and even served on advisory councils during his presidency. However, their relationship has deteriorated over time, particularly as Trump began promoting massive federal spending programs that Musk sees as financially reckless.

The disagreement over the $4 trillion tax and spending bill appears to be the final breaking point. Musk believes such fiscal policies could harm innovation, increase inflation, and discourage private enterprise—particularly in the energy and tech sectors.

In recent interviews and social media posts, Musk hinted at supporting candidates or political movements that oppose excessive government spending. He even floated the idea of backing a third political party focused on free enterprise, innovation, and limited government.

“I’m not aligned with any party right now,” Musk said. “But I’ll support those who make sound economic decisions for the country’s future.”

Analysts suggest Musk’s involvement in U.S. politics may deepen in 2026, especially as the country heads toward a high-stakes general election. Some even speculate that Musk may become a kingmaker figure, using his wealth and influence to shape national discourse.

Government Subsidies and the Debate Around Fairness:
Trump’s criticism highlights a long-standing debate over government subsidies to private companies, particularly in the clean energy and aerospace sectors. Tesla has historically received federal tax credits for electric vehicles, while SpaceX has secured billions in government contracts through NASA and the Department of Defense.

While critics argue these subsidies favor billionaires, supporters claim they promote innovation, job creation, and global competitiveness. Without these investments, America could lose its edge in the electric vehicle and space industries—areas where China and Europe are rapidly catching up.

Immigration law experts have confirmed that Trump’s deportation suggestion holds no legal merit.
“Elon Musk is a naturalized U.S. citizen. Deporting him is not legally possible without a court-ordered denaturalization, which is extremely rare and unrelated to political disagreements,”

said Prof. Laura Simmons, an immigration policy analyst based in New York.

Constitutional scholars also warned that threatening business leaders for expressing opinions could set a dangerous precedent.

“Such rhetoric undermines free speech and raises concerns about political retaliation,”

said Harvard Law professor Daniel Rivers.

As the Trump–Musk conflict continues to unfold, it reflects deeper tensions within American politics—between old-guard populism and new-age technocracy, between government control and private innovation.

While Trump’s remarks may galvanize his base, Musk’s subtle but strategic responses suggest that the tech mogul won’t be backing down anytime soon. With elections looming and economic debates intensifying, this high-profile feud could have far-reaching implications not only for their respective futures but for the direction of U.S. policy and global tech leadership.


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