Tesla Inc. (TSLA) shares dipped nearly 5% in premarket trading after a renewed public feud between President Donald Trump and Chief Executive Officer Elon Musk escalated over a proposed tax-and-spending bill. The renewed spat highlights the potential political headwinds for Musk’s ventures.
Musk publicly criticized the Trump administration’s “big, beautiful bill” on X, citing its projected impact on the national deficit. He vowed to support primary challenges against any politician backing the legislation and even suggested the formation of a new political entity, “the America party,” if the bill passed.
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk posted. “And they will lose their primary next year if it is the last thing I do on this Earth.”
President Trump swiftly countered on Truth Social, threatening a review of government funding allocated to Musk’s companies. Trump suggested that his administration’s Department of Government Efficiency, which Musk recently led, should “take a good, hard look” at Tesla’s subsidies.
“Elon may get more subsidies 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,” Trump wrote, adding, “Our Country would save a FORTUNE.”
The bill, which Senate Republicans are attempting to secure votes for, aims to extend tax cuts, increase defense and border funding, while reducing spending on programs such as Medicaid and food aid. The Congressional Budget Office estimates that the legislation would add approximately $3.3 trillion to deficits over the next decade compared to current policy.
