First of all, look at what happened today between Elon and Trump.
Trump vs Elon Musk Feud Erupts Again Over Federal Subsidies and GOP Mega Bill
Tesla’s stock takes a nosedive as political tensions make their way onto social media.
WASHINGTON, D.C. — July 1, 2025: Today, President Donald Trump and tech billionaire Elon Musk reignited their ongoing rivalry with a fiery debate about federal subsidies and a controversial Republican spending bill. The public spat played out on social media, shaking investor confidence and widening a political rift as the 2026 midterm elections approach.
Trump Attacks Musk on Truth Social
Early on Tuesday morning, Donald Trump took a dig at Musk on his Truth social platform, alleging that billionaire Musk is too reliant on federal subsidies to keep his business afloat.
“Elon may get more subsidy than any human being in history… without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote. “Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!”
The term “DOGE” actually refers to the Department of Government Efficiency, a Trump-backed organization focused on cutting federal spending. Interestingly, Musk has criticized this agency in recent weeks.
Elon Musk hits back at X
In just about an hour, Musk shot back with a straightforward message on his X (formerly Twitter) account:
> “I am literally saying CUT IT ALL. Now.”
He didn’t hold back in his follow-up posts, insisting that he’s always been a proponent of eliminating corporate subsidies entirely and that political forces were misrepresenting his stance. Musk also suggested he might be pulling away from Republican leadership:
> “If the GOP continues down this path, the America Party will be more than an idea.”
Tesla Stock Takes a Hit Amid Ongoing Turmoil
The online clash had immediate financial consequences. Tesla’s stock plummeted by more than 7.3% in early trading, marking its biggest single-day drop in months. Investors seemed shaken by the renewed political tensions and the uncertainty surrounding future federal support for clean energy and AI infrastructure.
Trump vs Elon Musk : The Billionaire Breakup That Could Reshape American Politics
Two of the most influential figures in America—President Donald Trump and Tesla/SpaceX CEO Elon Musk—are now at odds, embroiled in a very public clash that’s unfolding right before our eyes.
Once allies who shared stages, exchanged compliments, and aligned on policy goals, their bond has crumbled under the strain of political betrayal, threats over subsidies, and a piece of legislation they both describe as “beautiful”—yet interpret in completely different ways.
Timeline : From Allies to Open Warfare
What happened in the years 2016-2020 Musk was part of Trump’s economic advisory councils; during this time, Tesla secured significant tax credits, and SpaceX received significant defense and NASA contracts.
2021 Musk started to step back from politics; he criticized Biden but didn’t throw his support behind Trump.
2024 Musk suggests the “common sense” third-party idea, but Trump rejects the suggestion. June 2025 Musk criticizes Trump’s “One Big Beautiful Bill,” calling it a disaster. In response, Trump threatens to cut off Musk’s subsidies, and their feud escalates.
How did the controversy start?
The “One Big Beautiful Bill” (OBBBA)
Trump’s sweeping $4 trillion bill proposes
Major tax cuts for fossil fuels and defense
Deregulation of environmental limits
Reductions in green energy funding
Increases in border security and trade tariffs
Musk, who founded Tesla on the principles of clean energy and built SpaceX through scientific contracts, described the plan as “insane” and “anti-future.”
“It’s a pork explosion that favors oil and tanks over tech and truth,” he tweeted.
Elon Musk didn’t just stick to tweeting—he had a serious message for Republicans :
Any senator who votes yes on OBBBA will face a primary challenge. I’ll personally back their opponents
He even dropped a hint about possibly launching a new “America Party,” pointing out how both major parties have failed to support emerging industries.
Trump’s Revenge
Elon’s whole empire is built on subsidies. Without taxpayer support, he’d be out of business. Maybe it’s time for him to head back to South Africa.”
He also shared that his new oversight agency, DOGE (Department of Government Efficiency), will be auditing all federal deals linked to Musk, from electric vehicle credits to Starlink contracts.
The real stakes behind the rhetoric
Musk’s Risks:
* $3.5 billion in Tesla EV credits
* Over $15 billion in contracts with SpaceX, NASA, and the Department of Defense
* $885 million in FCC subsidies for Starlink
Trump risks :
* He might alienate tech-savvy conservatives.
*There’s a chance of splitting the MAGA movement into two factions: populist nationalists and free-market libertarians.
* He could inadvertently pave the way for a third-party spoiler campaign led by Musk.
The Cultural Fallout
Musk’s Message:
> “If you cut every dime of federal funding, we’d still survive. I don’t owe Washington anything. America deserves better than fear politics.”
Trump’s Counter:
> “He’s a user, not a patriot. I made him rich, and he turns around and attacks us?”
The most profound rift isn’t just about money—it’s about dignity. Trump holds loyalty in high regard, while Musk, who’s becoming more anti-establishment, sees himself as the “engineer of American independence from outdated power.”
Technology vs Tradition: The real ideological conflict
This isn’t just two billionaires fighting — it’s the symbol of disruption (Musk) versus the guardian of tradition (Trump).
Musk stands for AI, Mars colonization, crypto, and decentralized futures.
Trump represents manufacturing revival, fossil fuel dominance, and political loyalty.
Why connect: It appeals to both a tech audience and conservative thinkers. It shows that this debate is not just about money, but about attitudes.
Voter Demographics Shift: Who’s Paying Attention?
Young Libertarians: They really appreciate Musk’s “no subsidies, no loyalty” approach.
Blue-collar Conservatives: They’re still on Trump’s side, but they’re starting to wonder if he’s now “punching down.”
Silicon Valley Independents: They’re quietly cheering for Musk, hoping he takes a political leap.
Why it matters: This shift shows that opinions are changing — particularly among Gen Z and young male voters in key swing states like Arizona, Nevada and Georgia.
Crypto Community Reacts :
Elon’s “CUT IT ALL” post sparked a spike in meme tokens like $DOGE and $FREEMARKET.
Crypto influencers are framing this as “freedom vs. fed funding.”
Trump’s old stance on CBDCs (Central Bank Digital Currency) is also being criticized now.
Psychological layer: ego versus ideal
Analysts say this is also a war of personal legacy:
Trump wants to be remembered as the man who “rebuilt America.”
Musk wants to be remembered as the man who “redefined America.”
Both see each other as obstacles to that legacy.
Musk’s Endgame: Is He Positioning for 2028?
According to several insiders, Musk might kick off a political PAC called the “America Party” as early as 2026. If he decides against running himself, he could still back independent candidates who champion AI innovation, clean energy, and fiscal reform. He’s already collecting insights through X polls to gauge how voters are feeling.
https://thestatesalert.com/senate-passes-trumps-big-beautiful-bill/https://thestatesalert.com/live-saudi-arabia-pledges-full-support-for-qatar-amid-rising-missile-tensions-in-the-middle-east/
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