President Donald Trump launched a criticism of electric vehicle mandates and Tesla Inc. TSLA CEO Elon Musk on Tuesday, suggesting his former government efficiency advisor’s empire depends entirely on federal subsidies.
What Happened: “Elon may get more subsidy 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 on Truth Social. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a fortune.”
The president’s broadside comes amid Tesla’s deteriorating market position and Musk’s ongoing criticism of Trump’s “Big Beautiful Bill,” a nearly 1,000-page spending and tax package. Trump specifically suggested the Department of Government Efficiency (DOGE), which Musk previously headed, should examine billions in subsidies flowing to his companies.
Tesla faces mounting headwinds across key markets. Sales in Canada plummeted 87% in Quebec during the first quarter of 2025, with researcher Troy Teslike warning the company may report GAAP losses starting in the first quarter of 2026. Tesla continues operating 35 Canadian stores despite near-zero sales.
The EV mandate criticism reflects Trump’s campaign promise to roll back former President Joe Biden-era clean energy incentives. “Electric cars are fine, but not everyone should be forced to own one,” Trump stated, emphasizing his consistent opposition predated Musk’s presidential endorsement.
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Why It Matters: The feud reignited tensions between the former allies following Musk’s June departure from the Trump administration. Musk, who reportedly contributed over $250 million to Trump’s 2024 campaign, has repeatedly attacked the spending bill as “utterly insane and destructive.” The Congressional Budget Office estimates the legislation would increase federal deficits by more than $3 trillion over a decade.
Tesla’s stock has declined amid political controversy surrounding Musk’s government role. His net worth, which peaked at $440 billion in December, dropped to $363 billion following Tesla’s value erosion and vandalism targeting dealerships during his government tenure.
The president’s subsidy criticism carries particular weight given SpaceX‘s reliance on NASA contracts and Tesla’s dependence on EV tax credits.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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