Trump Threatens to Cut Federal Support to Elon Musk’s Companies After EV Subsidy Criticism

Reported by Kokcha News Agency:
Tensions have escalated between U.S. President Donald Trump and tech billionaire Elon Musk following the Senate’s passage of a controversial tax reform bill that removes subsidies for electric vehicles (EVs). The legislation, narrowly approved on Tuesday, also increases federal spending—both issues Musk strongly opposed.

Musk’s Criticism
Musk, a major donor to Trump’s presidential campaign, criticized the bill for stripping key incentives that had helped promote clean transportation. The $7,500 federal tax credit for electric vehicle buyers—previously available for Tesla customers—was eliminated in the new measure, triggering sharp backlash from Musk.

Trump’s Threat
Reacting to Musk’s criticism, Trump threatened to withdraw billions in federal support for Musk-owned companies. Speaking at the White House, Trump said, “He’s upset about losing electric car subsidies—but he could lose a lot more.”

Following Trump’s comments, Tesla’s stock fell over 5% on the NASDAQ, reflecting investor concern over the president’s warning.

Musk’s Response
Musk responded on social media, stating, “Honestly, just cut all the subsidies now.” He also hinted that he could escalate the conflict but would “refrain for now.” Earlier, Musk floated the idea of forming a new political party and working to unseat pro-Trump lawmakers in the 2026 midterm elections, alarming GOP strategists.

Irony of the D.O.E.G.
The Department of Efficiency and Government Reform (D.O.E.G.), once led by Musk and responsible for major budget cuts to federal agencies, has now become a symbol of irony amid this dispute. Trump even joked, “D.O.E.G. might have to come back and eat Elon,” referring to the initiative’s tough cost-cutting stance.

Public Funding for Musk’s Companies
Despite previously supporting the idea of ending government subsidies, Musk’s companies—Tesla and SpaceX among them—have received substantial public funding over the years. These include tax breaks, infrastructure support, and environmental credits.

Critics Warn of Sector Instability
While the White House insists all government support is under review, critics argue that politicizing federal innovation funding could destabilize the clean energy sector. As Trump and Musk clash publicly, the future of America’s green tech leadership—and its regulatory framework—hangs in the balance.