Trump warns Musk may leave US if EV subsidies end

Trump warns Musk may leave US if EV subsidies end

U.S. President Donald Trump has sparked controversy by suggesting that Tesla and SpaceX CEO Elon Musk may be forced to “close up shop” and return to South Africa if electric vehicle (EV) subsidies are withdrawn. The comment came as part of an escalating feud between Trump and Musk over Trump’s massive spending legislation, dubbed the One Big Beautiful Bill.

Posting on Truth Social late Tuesday, Trump wrote, “Elon Musk knew, long before he so strongly endorsed me, that I was against the EV mandate. Without subsidies, Elon would probably have to close up shop and head back home to South Africa.” He further criticized federal support for electric vehicles and clean energy, calling it wasteful and a burden on taxpayers.

Trump claimed that Musk has received more subsidies than “any human being in history” and questioned whether the Department of Government Efficiency (DOGE), which Musk once headed under Trump, should investigate the matter.

In response, Musk lashed out at lawmakers supporting Trump’s spending package, threatening political retribution. “Every member of Congress who campaigned on reducing government spending and then voted for this debt bomb should hang their head in shame,” Musk said on X, warning he would ensure their defeat in 2026 primaries.

He also floated the idea of launching a new political platform called the “American Party” if the bill passes in the Senate.

The 940-page bill, advanced in a narrow Senate vote, proposes extending 2017 tax cuts, increasing military and border spending, and slashing welfare programs, including Medicaid and renewable energy funds.

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