US President Donald Trump suggested on Monday that the Department of Government Efficiency (DOGE) should review subsidies that Tesla CEO and former chief executive Elon Musk's companies have received to save federal funds, Reuters reported, BTA reported.
Trump's comments come after Elon Musk renewed his criticism yesterday of the tax cut and spending bill proposed by Trump.
"Elon could receive more subsidies than any other person in history, by far, and without subsidies, Elon would probably have to close his business and return home to South Africa. No more rocket launches, satellites, or electric car production and our country will save a fortune. Maybe we should get the Department of Government Efficiency to take a good hard look at this? Huge costs could be saved!!!" Trump wrote in a post on Truth Social.
"I'm literally saying 'stop everything.' Now," Musk wrote in response on his social media account, Ex. (X).
After weeks of relative quiet following a spat with Trump over the proposed legislation, Musk rejoined the debate on Saturday as the Senate considered the US president's budget proposal, calling it "absolutely insane and destructive".
Yesterday, Musk stepped up his criticism, saying that members of Congress who campaigned on spending cuts but supported the bill "should be ashamed of themselves!", adding that they would lose "the US midterm elections (for Congress) next year" if they supported Trump's proposed legislation.
The CEO of "Tesla" and SpaceX again called for a new political party, saying the huge spending bill shows "we live in a one-party state."
"It's time for a new political party that truly cares about people," he wrote on the X platform.
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 reelection campaign, Reuters reports.
Musk has argued that the bill would significantly increase the nation's debt and wipe out savings achieved during his tenure at the Department of Government Efficiency.
It is unclear what influence Musk has over Congress or what effect his views might have on passage. of the bill. The Republican Party has expressed concern that his disagreements with Trump could hurt their chances of defending their majority in the 2026 midterm elections for Congress.
The rift has also led to instability for "Tesla", with the company's shares experiencing sharp fluctuations that have wiped out approximately $150 billion from its market capitalization.
The bill is currently being debated in the Senate. If passed, it still needs to be approved by the House of Representatives (the lower house of the US Congress), DPA adds.
The independent Congressional Budget Office (CBO) has estimated that the bill would increase the US deficit by an additional $3.3 trillion over ten years.