The public dispute between United States President Donald Trump and entrepreneur Elon Musk has intensified, culminating in the President’s public demand for an audit of the substantial government subsidies received by Musk’s diverse enterprises. This directive, notably, proposes that the Department of Government Efficiency (DOGE)—an agency co-founded by Musk himself—conduct the review, highlighting the intricate layers of this high-profile conflict.
At the core of the discord lies disagreements over the “One Big Beautiful Bill,” a federal budget initiative that Musk has vocally opposed due to its proposed $5 trillion increase to the U.S. national debt ceiling. This ongoing dispute has reverberated through financial markets, contributing to a Bitcoin correction observed in early June 2025.
President Trump’s Call for Audit and Criticisms
President Trump has leveled sharp criticism at Musk, asserting that despite the entrepreneur’s previous political endorsement, Trump’s opposition to the Electric Vehicle (EV) Mandate remained consistently clear throughout his campaign. The President characterized the mandate as “absurd” and underscored its repeal on January 20, 2025—a legislative reversal of efforts initially championed by the Biden administration in California during 2024.
Trump further contended that Musk’s businesses have disproportionately benefited from government assistance. In a pointed remark, he stated, “Elon received more subsidies than anyone in the world. Without them, he’ll have to ‘close shop’ and return home, to South Africa.” This rhetoric culminated in a direct challenge to “order DOGE to conduct a thorough audit of all this.”
Musk’s Rebuttal and the Role of DOGE
It is particularly noteworthy that DOGE was conceived through Musk’s own initiative, and he served as its inaugural head until late May 2025, when he stepped down to dedicate more focus to his private ventures. Responding to the President’s comments, Musk, in an interview with Tesla Owners Silicon Valley, clarified that his opposition to the budget bill is entirely unrelated to the EV Mandate or any associated subsidies.
He emphasized his company’s intrinsic strength, stating, “Cancel all benefits in this sector tomorrow and Tesla’s competitive position will only grow,” suggesting Tesla’s market leadership is independent of government incentives.
Market Impact and Broader Business Dynamics
The escalating political tension has visibly impacted market perception of Musk’s flagship company. Following President Trump’s latest remarks, Tesla’s stock experienced a notable 10% decline. At the opening of trading on July 1, the share price dipped below the $300 mark on Nasdaq. Meanwhile, illustrating the continued breadth of Musk’s entrepreneurial reach, another of his ventures, xAI, recently secured a substantial $10 billion in funding to advance its artificial intelligence products.
Source: TradingView
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