Stacy Pereira
- Trump lambasted Musk over his opinion on the budget bill, threatening to cut subsidies to the EV maker.
- Musk warned that he would launch a new “America Party” if the bill proceeds.
- Trump slammed Musk asking the latter to ‘go back home to South Africa’.
It’s been over a month since the Donald Trump-Elon Musk fallout has been dramatically unraveling. The once-cozy alliance between the two took a turn downhill mainly due to differences over Trump’s signature budget package, commonly dubbed the “One Big Beautiful Bill” (OBBBA). July seems to be no different, with Trump and Musk continuing to sparr fiercely online.
Donald Trump lashed out at Musk in his Truth Social post on July 1, 2025, accusing the Tesla CEO of taking undue advantage of the government EV subsidies. He said that “Electric cars are fine, but not everyone should be forced to own one.” The President was so outraged that he suggested — “Elon would probably have to close up shop and head back home to South Africa”.
This comes as Elon Musk didn’t mince his words to badmouth the latest version of Trump’s multi-trillion-dollar tax bill. He even warned that he would launch a new “America Party” if Trump’s “Big, Beautiful Bill” moves forward. Labeling Congress as the “Porky Pig Party,” Musk took potshots at both Trump and lawmakers, describing the Republican tax-and-spending bill as a “disgusting abomination,” and criticising it for its size and wastefulness.
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By mid-June, the rift between the two seemed to be cooling off. Musk offered an apology, admitting he overstepped, while Trump said he’s “not thinking about” Musk at the moment, but neither made efforts towards a full reconciliation.
Their feud has deep implications for Musk’s companies—Tesla, SpaceX, and Starlink. Tesla shares slumped over 5% after Trump’s post and are down 12.33% in the past month. With both sides wielding social media and political pressure, the standoff is likely to influence both policy and public sentiment well into the mid‑term season.
