Trump suggests slashing Tesla subsidies, Musk says 'cut it all'
Trump's remarks came after Musk, a Republican mega-donor, renewed his criticism of the sweeping tax-cut and spending bill and vowed to unseat lawmakers who supported it despite campaigning on limiting government spending.
Tesla shares fell more than 6% before the market open as the feud could add fresh hurdles for the business empire of Musk, whose main source of wealth, the electric automaker, is betting on the success of robotaxis being tested in Texas.
The US Transportation Department regulates vehicle design and will play a key role in deciding if Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk's rocket firm 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 SA,' Trump said in a Truth Social post, referring to the Department of Government Efficiency.
'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!!!'
In response, Musk said on his own social media platform X, 'I am literally saying CUT IT ALL. Now.'
Trump said Musk was upset because he lost the EV mandate in the recent tax and spending bill and warned the Tesla CEO 'could lose a lot more than that'.
Treasury Secretary Scott Bessent also pushed back on Musk's criticism that the bill would balloon the deficit, saying, 'I'll take care of' the country's finances.
Trump had in early June threatened to cut Musk's government contracts when their relationship erupted into an all-out social media brawl over the tax-cut bill, which non-partisan analysts estimate would add about $3 trillion to the US debt.
The rift had resulted in Tesla shares erasing $150 billion in market value, as investors feared a tougher regulatory road for the self-driving robotaxi that underpin much of the company's valuation.
The stock recovered after Musk walked back some of his jabs, saying he had gone 'too far'.
'Musk cannot stop himself. He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well,' said Stock Trader Network Chief Strategist Dennis Dick, who holds Tesla shares.
'Musk needs Trump, Trump does not need Musk,' he said.
Tesla sales have dropped for a sixth straight month in Sweden and Denmark in June, data on Tuesday showed. Analysts expect the company to report a drop in second-quarter delivery figures on Wednesday.
SHORT-LIVED TRUCE
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, Musk 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 said.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald
37 minutes ago
- The Herald
Hamas says it responds to Gaza ceasefire proposal in 'a positive spirit'
An Egyptian security official told Reuters that Egypt, which along with Qatar is mediating ceasefire efforts, had seen Hamas' response and said: 'It includes positive signs that an agreement is near, but there are some demands from Hamas that need to be worked on.' Trump has said he would be 'very firm' with Netanyahu on the need for a speedy Gaza ceasefire, adding that the Israeli leader wants one as well. Israeli attacks have killed at least 138 Palestinians in Gaza over the past 24 hours, local health officials said. Health officials at the Nasser Hospital in Khan Younis, southern Gaza, said the Israeli military had carried out an air strike on a tent encampment west of the city at about 2am, killing 15 Palestinians displaced by nearly two years of war. The Israeli military said troops operating in the Khan Younis area had eliminated militants, confiscated weapons and dismantled Hamas outposts in the previous 24 hours while striking 100 targets across Gaza, including military structures, weapons storage facilities and launchers. Later on Friday, Palestinians gathered to perform funeral prayers before burying those killed overnight. 'There should have been a ceasefire long ago before I lost my brother,' said 13-year-old Mayar Al Farr as she wept. Her brother, Mahmoud, was shot dead in another incident, she said. 'He went to get aid, so he can get a bag of flour for us to eat. He got a bullet in his neck,' she said. In Tel Aviv, families and friends of hostages held in Gaza were among demonstrators who gathered outside a US embassy building on US Independence Day, calling on Trump to secure a deal for all of the captives. Demonstrators set up a symbolic Sabbath dinner table, placing 50 empty chairs to represent those who are still held in Gaza. Banners hung nearby displaying a post by Trump from his Truth Social platform that read, 'MAKE THE DEAL IN GAZA. GET THE HOSTAGES BACK!!!' 'Only you can make the deal. We want one beautiful deal. One beautiful hostage deal,' said Gideon Rosenberg, 48, from Tel Aviv. Rosenberg was wearing a shirt with the image of hostage Avinatan Or, one of his employees who was abducted by Palestinian militants from the Nova musical festival on October 7, 2023. He is among the 20 hostages who are believed to be alive after more than 600 days of captivity. An official familiar with the negotiations said on Thursday that the proposal envisages the return of 10 of the hostages during the 60 days, along with the bodies of 18 others who had died since being taken hostage. Ruby Chen, 55, the father of 19-year-old American-Israeli Itay, who is believed to have been killed after being taken captive, urged Netanyahu to return from meeting Trump with a deal that brings back all hostages. Itay Chen, also a German national, was serving as an Israeli soldier when Hamas carried out its surprise attack, killing about 1,200 people, mostly civilians, and taking 251 hostage. Reuters
The Citizen
2 hours ago
- The Citizen
Hamas says ready to start Gaza ceasefire talks ‘immediately'
Two previous ceasefires mediated by Qatar, Egypt and the United States have seen temporary halts in fighting. Boys inspect the rubble of a destroyed building that was hit by Israeli bombardment in Jabalia in the northern Gaza Strip on 18 April 2025. Picture: Bashar Taleb / AFP Israel was mulling its response on Saturday after Hamas said it was ready to start talks 'immediately' on a US-sponsored proposal for a Gaza ceasefire. The security cabinet was expected to meet after the end of the Jewish sabbath at sundown to discuss Israel's next steps as Prime Minister Benjamin Netanyahu prepares to leave for Washington for talks on Monday with US President Donald Trump. Trump has been making a renewed push for an end to nearly 21 months of war in Gaza, where the civil defence agency said 32 people were killed in Israeli military operations on Saturday. 'No decision has been made yet on that issue,' an Israeli government official told AFP when asked about Hamas's positive response to the latest ceasefire proposal. ALSO READ: Israel bombs café during children's birthday party in Gaza — 39 killed Hamas made its announcement late Friday after holding consultations with other Palestinian factions. 'The movement is ready to engage immediately and seriously in a cycle of negotiations on the mechanism to put in place' the terms of the US-backed truce proposal, the militant group said in a statement. Hamas ally Islamic Jihad said it supported ceasefire talks, but demanded 'guarantees' that Israel 'will not resume its aggression' once hostages held in Gaza are freed. Trump, when asked about Hamas's response aboard Air Force One, said: 'That's good. They haven't briefed me on it. We have to get it over with. We have to do something about Gaza.' The war in Gaza began with Hamas's October 2023 attack, which sparked a massive Israeli offensive aimed at destroying Hamas and bringing home all the hostages seized by Palestinian militants. Two previous ceasefires mediated by Qatar, Egypt and the United States have seen temporary halts in fighting, coupled with the return of Israeli hostages in exchange for Palestinian prisoners. 60-day truce proposal Efforts to broker a new truce have repeatedly failed, with the primary point of contention being Israel's rejection of Hamas's demand for guarantees that any new ceasefire will be lasting. A Palestinian source familiar with the negotiations told AFP earlier this week that the latest proposal included 'a 60-day truce, during which Hamas would release half of the living Israeli captives in the Gaza Strip' – thought to number 22 – 'in exchange for Israel releasing a number of Palestinian prisoners and detainees'. Out of 251 hostages seized by Palestinian militants during the October 2023 attack, 49 are still held in Gaza, including 27 the Israeli military says are dead. Nearly 21 months of war have created dire humanitarian conditions for the more than two million people in the Gaza Strip, where Israel has recently expanded its military operations. A US- and Israel-backed group, the Gaza Humanitarian Foundation, took the lead in food distributions in the territory in late May when Israel eased a more than two month blockade on aid deliveries. READ MORE: Six Israelis detained for attacking soldiers in West Bank The group said two of its US staff were wounded in an 'attack' on one of its aid centres in southern Gaza on Saturday. 'This morning, two American aid workers were injured in a targeted terrorist attack during food distribution activities at SDS-3 in Khan Yunis,' the organisation said, adding that reports indicated it was carried out by 'two assailants who threw two grenades at the Americans'. UN agencies and major aid groups have refused to cooperate with the GHF over concerns it was designed to cater to Israeli military objectives. Its operations have been marred by chaotic scenes and near-daily reports of Israeli fire on people waiting to collect rations. UN human rights office spokeswoman Ravina Shamdasani said Friday that more than 500 people have been killed waiting to access food from GHF distribution points. GHF's chairman Johnnie Moore, a Christian evangelical leader allied to Trump, on Wednesday rejected calls for the lead role in Gaza aid distributions to revert to UN agencies. 'We will not be shut down. We have one job to do. It's very simple, every day to provide free food to the people of Gaza,' he told reporters. Civil defence says schools hit Civil defence spokesman Mahmud Bassal said Israeli military operations killed 32 people across the war-battered territory on Saturday. Media restrictions in Gaza and difficulties in accessing many areas mean AFP is unable to independently verify the tolls and details provided by the civil defence agency. Bassal said Saturday's dead included eight people killed in two strikes on schools in Gaza City. Contacted by AFP, the Israeli military said it could not comment on specific strikes without precise coordinates. The Hamas attack of October 2023 resulted in the deaths of 1 219 people, mostly civilians, according to an AFP tally based on Israeli official figures. Israel's retaliatory campaign has killed at least 57 268 people in Gaza, also mostly civilians, according to the Hamas-run territory's health ministry. The United Nations considers the figures reliable. NOW READ: Israel accused of starving Gaza 'by design' — South Africa addresses ICJ
TimesLIVE
3 hours ago
- TimesLIVE
Trump says US will start talks with China on TikTok deal this week
US President Donald Trump said on Friday he will start talking to China on Monday or Tuesday about a possible TikTok deal. He said the US 'pretty much' has a deal on the sale of the TikTok short-video app. 'I think we're gonna start Monday or Tuesday ... talking to China, perhaps President Xi or one of his representatives, but we would pretty much have a deal,' Trump told reporters on Air Force One. Last month, Trump extended to September 17 a deadline for China-based ByteDance to divest the US assets of TikTok. A deal had been in the works this spring to spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors, but it was put on hold after China indicated it would not approve it after Trump's announcements of steep tariffs on Chinese goods. Trump said the US will probably have to get a deal approved by China. When asked how confident he was that China would agree to a deal, he said, 'I'm not confident, but I think so. President Xi and I have a great relationship, and I think it's good for them. I think the deal is good for China and it's good for us.'
