"Trump&Musk" mutual confrontation reaches new heights! Trump suggests DOGE get involved in the review, Tesla's stock price suffers

According to Zhitong Finance APP, on July 1, U.S. President Donald Trump posted on the social media platform Truth Social, suggesting that the federal government's efficiency department DOGE, which he leads, conduct a subsidy review of Tesla (TSLA.US), directly pointing out that this electric vehicle giant "may have received the highest government subsidies in history." This statement has escalated the ongoing financial policy dispute between Musk and Trump to new heights.

In his post, Trump sharply pointed out: "Without taxpayer bailouts, Musk's rocket factory, satellite production line, and electric vehicle empire would come to a halt; this South African immigrant entrepreneur might as well pack up and go back home." He specifically mentioned the $22 billion federal contracts held by Musk's space exploration company SpaceX, as well as government cooperation projects in the Starlink satellite division.

Interestingly, just before this confrontation, Musk had criticized the trillion-dollar fiscal bill promoted by Trump on his own social media platform X, threatening to push for the ousting of congressional members who supported the bill, and bluntly stating, "All spending should be stopped now."

In response to Trump's suggestion for DOGE to review government subsidies related to Musk's Tesla, Musk stated on his social media platform X: "What I'm actually saying is to stop everything of mine right now."

The trigger for this showdown between political and business giants can be traced back to early June. At that time, a nonpartisan organization estimated that Trump's proposed comprehensive tax cuts and spending bill would increase the U.S. national debt by $3 trillion, prompting Musk to launch a fierce attack on social media. Although he remained silent for several weeks afterward, when the Senate resumed consideration of the bill on June 29, the world's richest man struck back again, denouncing the legislation as "crazy and destructive," and threatening to ensure that lawmakers who violated spending cut commitments would lose in the 2026 midterm elections.

The capital markets reacted strongly to this prolonged power struggle. On June 5, Tesla's stock price had already experienced a single-day evaporation of $150 billion, marking the largest drop in the company's history, although it later recovered some ground. As of the time of writing on July 1, Tesla's U.S. stock was fluctuating down about 5.1% in after-hours trading, having previously plummeted over 7%. Political observers are concerned that the ongoing feud between Musk and Trump could undermine the Republican Party's slim advantage in Congress, especially since this tech tycoon had spent nearly $300 million to support Trump's re-election and was deeply involved in the DOGE government downsizing plan.

In his latest statement, Musk further pointed to the political ecology in Washington: "We are living under the rule of a 'unipolar pig party'," implying that both parties collude in fiscal extravagance. This complex struggle involving trillion-dollar budgets, the fate of tech giants, and party maneuvering is becoming the latest litmus test for examining the boundaries of U.S. political and business relations.

Musk's latest criticism of Trump's tax cut proposal marks a significant shift in the tech billionaire's attitude toward the Trump administration, following his nearly $300 million expenditure in support of Trump's re-election campaign and leadership of the controversial DOGE cost-cutting plan Musk believes that the legislation will significantly increase national debt and erase the cost reductions he achieved through DOGE.

It is currently unclear how much influence Musk has over Congress and what impact his opinions may have on the passage of the bill. However, many Republicans express concern that the intermittent disputes between Musk, who holds significant influence in the U.S. technology sector and among the public, and Trump may jeopardize their chances of maintaining a majority in the 2026 midterm elections