---
title: "Trump suggests DOGE look at subsidies for Musk's companies to save money"
description: "WASHINGTON, July 1(Reuters) - US President Donald Trump suggested the government efficiency department should review the subsidies Tesla CEO Elon Musk's companies have received in order to save money, reginiting a war of words between the world's most powerful man and its richest."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-07-01-trump-suggests-doge-look-at-subsidies-for-musks-companies-to-save-money/"
published: "2025-07-01T12:29:38"
updated: "2025-07-01T12:29:39"
lang: "en-ZA"
word_count: 497
---

# Trump suggests DOGE look at subsidies for Musk's companies to save money

> WASHINGTON, July 1(Reuters) - US President Donald Trump suggested the government efficiency department should review the subsidies Tesla CEO Elon Musk's companies have received in order to save money, reginiting a war of words between the world's most powerful man and its richest.

By Reuters · Published 1 July 2025, 14:29 SAST · Updated 1 July 2025, 14:29 SAST

## Key points
- In a spectacular clash of titans, Trump takes a jab at Musk's dependency on government handouts, while the Tesla chief fires back with a call for fiscal restraint, leaving investors wondering if their electric dreams are about to hit a speed bump—or a full-on crash.
- Trump criticizes Musk's reliance on federal subsidies, suggesting his businesses would collapse without them.
- Musk retaliates, calling for an end to all subsidies and condemning lawmakers who supported a controversial spending bill.
- The ongoing feud could jeopardize Tesla's future and Musk's federal contracts, with significant market implications.
- Analysts warn that Musk's influence on Congress may be limited, raising concerns for Republicans ahead of the 2026 midterms.

## Content

By Nandita Bose, Kritika Lamba and Shubham Kalia

Trump's remarks on Tuesday came after Musk renewed his criticism of the sweeping [tax-cut and spending bill](https://www.reutersconnect.com/all?search=all%3AL8N3SY02Y&linkedFromStory=true), vowing to unseat lawmakers who supported it after campaigning on limiting government spending.

Tesla shares fell nearly 5% in premarket trading.

Feuding with Trump could create hurdles for Tesla and the rest of Musk's business empire.

The U.S. Transportation Department regulates vehicle design and would play a key role in deciding whether Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket company SpaceX has about $22 billion in federal contracts.

"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!!!," Trump said in a post on Truth Social, referring to the federal Department of Government Efficiency (DOGE).

In response to Trump's post, Musk, on his own social media platform X, said, "I am literally saying CUT IT ALL. Now."

Trump previously [threatened](https://www.reutersconnect.com/all?search=all%3AL3N3S81F9&linkedFromStory=true) to cut Musk's government contracts when their relationship erupted into an all-out social media brawl in early June over the bill, which non-partisan analysts have said would add about $3 trillion to the U.S. debt.

The rift had sent Tesla shares into a free-fall, wiping out [about](https://www.reutersconnect.com/all?search=all%3AL2N3S90GG&linkedFromStory=true) $150 billion in market value in the company's biggest single-day decline. The stock later rebounded after Musk walked back some of his jabs, saying he had gone "too far."

But after weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X.

On Monday, he said lawmakers who campaigned on cutting spending but backed the bill "should hang their heads in shame!" "And they will lose their primary next year if it is the last thing I do on this Earth," Musk added.

He also 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!!"

The criticism marked a dramatic shift after the billionaire spent nearly $300 million on Trump's re-election campaign and led the administration's controversial DOGE initiative.

Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he 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.

(Reporting by Nandita Bose in Washington, and Kritika Lamba and Shubham Kalia in Bengaluru; Editing by Colleen Jenkins, Rosalba O'Brien, Christian Schmollinger and Sriraj Kalluvila)