The ongoing tension between US President Donald Trump and Tesla-space X CEO Elon Musk has now taken a serious form. Trump warned on Tuesday that if the criticism of Musk continues, his government would stop a subsidy of billions of dollars being given to Tesla and Space X.
The controversy was enraged when the world’s richest man Elon Musk criticized Trump’s ‘One Big Beautiful Bill’, which will eliminate the subsidy on purchasing electric vehicles that is a facility that Tesla has benefited huge. The bill has been passed by the US Senate on Tuesday by a very small margin.
Talking to the media on Tuesday, Trump said, “He (Musk) is angry that his EV (electric vehicle) subsidy is ending … but he could suffer even more damage.”
Also read: Donald Trump’s ‘One Big Beautiful Bill’ passes in the Senate, will Alan Musk now form a new party?
Although Musk had earlier talked about ending the subsidies, Tesla has so far benefited from billions of dollars tax credit and government schemes, including a major dollar consumer tax credit.
Tesla shares fell by 5.5% on Tuesday
Musk warned that if the ‘One Big Beautiful Bill’ is passed, he can start a new political party and spend money against the MPs who support this bill. Republican has expressed concern that Musk’s frequent quarrel with Trump can harm their opportunities in the 2026 mid-term Congress elections. Treasury Secretary Scott Besant retaliating the criticism of Musk, saying, “I will take care of the country’s finance.” The effect of Trump and Musk’s dispute was that Tesla’s shares fell by more than 5.5% on Tuesday.
Gary Black, who has long been managed by Tesla’s investor and Future Fund LLC for a long time, recently sold his shares due to a decline in sales of Tesla car. They told that they are considering when to invest again. Black assumes that Tesla will be damaged by eliminating the electric vehicle credit. In a separate post on X, Black said: “Don’t know why Elon Musk is not seeing how much he can suffer from the bill brought by President Trump.”
Trump wrote on social media, “Mask has received as much subsidy so far, no human being got in history … Now no rocket launch, no satellite, no electric cars – the country will save a lot.”
ALSO READ: ‘Elon Musk will have to close shop and return to Africa’, if the fight increased, Trump started threatening to investigate Doge
Challenges for Tesla
This war of Trump and Musk may affect Tesla’s trade, especially when the company is betting on autonomous robotaxi. This project is dependent on state and federal level approval. Analysts believe that Tesla’s earnings may fall by $ 1.2 billion due to the removal of EV tax credit.
Space X has a federal contract of about 22 billion dollars, while Tesla has earned a revenue of about 11 billion dollars in the last few years by selling green credit only. These credits buy companies that are unable to follow the emission rules.
Trump had earlier also indicated that he could question Musk’s citizenship. When asked if he would expel Musk from the country, he replied, “See.”