Musk criticizes tax-cut bill, calls for new political party

U.S. President Donald Trump suggested on Tuesday that the government efficiency department should take a look at the subsidies that Tesla CEO Elon Musk’s companies have received in order to save money.

Trump’s comments come after Musk, the world’s richest man, renewed his criticism on Monday of Trump’s sweeping tax-cut and spending bill, vowing to unseat lawmakers who backed it after campaigning on limiting government spending.

“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. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,” Trump said in a post on Truth Social, referring to the federal Department of Government Efficiency (DOGE).

In response to Trump’s post, Musk, on his own social media platform X, said “I am literally saying CUT IT ALL. Now.”

Trump previously threatened to cut Musk’s government subsidies and contracts when their relationship dissolved into an all-out brawl on social media in early June over the bill, which non-partisan analysts have said would add about $3 trillion to the U.S. debt.

Musk’s businesses include rocket company and government contractor SpaceX, which has about $22 billion in federal contracts, and its satellite unit Starlink.

His rift with Trump also caused volatility for Tesla, with shares of the electric car company losing about $150 billion of its market value on June 5, the largest single-day decline in the company’s history, though it has since recovered.

Tesla shares trading in Frankfurt tumbled 5% on Tuesday.

After weeks of relative silence following his earlier feud with Trump over the legislation, Musk rejoined the debate on Saturday as the Senate took up the package, calling it “utterly insane and destructive” in a post on X.

On Monday, he said lawmakers who had campaigned on cutting spending but backed the bill “should hang their heads in shame!”

“And they will lose their primary next year if it is the last thing I do on this Earth,” Musk added.

Musk called again for a new political party, saying the bill’s massive spending indicated “that we live in a one-party country – the PORKY PIG PARTY!!”

Musk’s criticism marked a dramatic shift after the tech billionaire spent nearly $300 million on Trump’s re-election campaign and led the administration’s controversial DOGE cost-cutting initiative.

Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he achieved through DOGE.

It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill’s passage. But Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.