Trump targets Elon Musk subsidies amid tax bill feud

Reuters
Reuters

U.S. President Donald Trump suggested reviewing subsidies granted to Elon Musk’s companies to save federal funds, reigniting a public feud after Musk’s sharp criticism of the government’s latest tax and spending bill.

Trump’s remarks followed Musk’s renewed condemnation of the sweeping tax-cut and spending legislation, which Musk called “utterly insane and destructive.” Musk vowed to oppose lawmakers who supported the bill despite campaigning to reduce government spending, warning they could lose primaries next year. 

This public spat marks a shift from Musk’s previous support of Trump, including his $300 million contribution to Trump’s re-election campaign and leadership of the administration’s cost-cutting DOGE initiative.

The feud has contributed to stock volatility in Tesla, which lost around $150 billion in market value before recovering. While Musk’s influence over Congress remains uncertain, Republicans worry the feud could affect their 2026 election prospects.

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