The conflict between U.S. President Donald Trump and billionaire Elon Musk is escalating. The President has called on the Department of Government Efficiency (DOGE), established at Musk’s initiative, to conduct an audit of the government subsidies received by Musk’s companies.
This is reported by Business • Media
Reasons for the Escalation Between Trump and Musk
The standoff between the two leaders intensified due to the massive budget bill “One Big Beautiful Bill,” which proposes raising the U.S. debt ceiling by $5 trillion. Elon Musk opposed this legislation, insisting that its implementation could harm the country’s economy.
The dispute gained new momentum after Musk stated that without his support, Trump would not have become president. Against the backdrop of this discussion, the cryptocurrency market experienced fluctuations — at the beginning of June 2025, Bitcoin reacted with a correction related to the conflict between the two prominent figures.
Trump’s Reaction and Musk’s Position
President Trump publicly criticized Musk’s stance on electric vehicles and government subsidies, reminding him of the EV Mandate — a legislative initiative from 2024 in California that aimed to phase out internal combustion engine vehicles in favor of electric cars. This measure received support from the Biden administration but was rescinded by Trump’s executive order on January 20, 2025.
“Elon Musk knew long before he supported me for the presidency that I was against the EV Mandate. It’s nonsensical, and its repeal was part of my campaign. Electric vehicles are good, but we shouldn’t force everyone to buy them. Elon has received more subsidies than anyone in the world. Without them, he’ll have to ‘close up shop’ and go back home to South Africa.”
Trump also stated that “perhaps it’s worth asking DOGE to conduct a thorough audit” of the subsidies received by Musk’s companies, particularly in the areas of rocket launches, satellites, and electric vehicle production.
It’s worth noting that DOGE — the Department of Government Efficiency — was founded at Elon Musk’s initiative, who led this division for some time but stepped down at the end of May 2025 to focus on his own business projects.
In response, Musk emphasized in an interview for Tesla Owners Silicon Valley that his stance on the bill is in no way related to the repeal of the EV Mandate or incentives for electric vehicles. He stated:
“Abolish all incentives in this sector tomorrow and Tesla’s competitive position will only improve.”
Despite this, Tesla’s stock has significantly lost value amid the intensifying dispute between the company’s owner and the U.S. President. Following Trump’s recent statements, Tesla’s shares dropped another 10%. At the opening of trading on July 1, the shares fell below the $300 mark.
It was previously reported that another Musk company — xAI — raised $10 billion in investments to develop its products in the field of artificial intelligence.