U.S. President Donald Trump has lashed out at Elon Musk, warning the billionaire entrepreneur that he may lose access to federal subsidies if he follows through on his threat to form a new political party.

The clash erupted after Musk, the CEO of Tesla and SpaceX, voiced strong opposition to Trump’s proposed “Big, Beautiful Bill,” currently under debate in the Republican-controlled Senate. The bill is facing criticism for allegedly offering massive tax cuts for the wealthy, while slashing healthcare, Medicaid, and school feeding programs for millions of low-income Americans.

Taking to his social platform X (formerly Twitter), Musk wrote:

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”

Just hours later, Musk escalated his threat:

“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”

Trump, responding via Truth Social early Tuesday, slammed Musk and questioned his motivations:

“Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV mandate. It’s ridiculous. Electric vehicles are fine, but not everyone should be forced to own one.”

The president then issued a veiled threat, suggesting that Musk’s success is heavily reliant on government funding:

“Elon may get more subsidy than any human being in history—by far—and without subsidies, he would probably have to close up shop and head back home to South Africa. No more rocket launches, satellites, or electric car production. Our country would save a FORTUNE.”

Trump also hinted at launching an investigation into Musk’s dealings, referencing the Department of Government Expenditure (DOGE), possibly as a play on the cryptocurrency Dogecoin, often associated with Musk:

“Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!”

Political Implications

Musk’s proposed “America Party” is seen as a potential disruptor to the traditional two-party system. His threats come at a crucial time for Trump, whose controversial bill is under intense scrutiny not only from Democrats but also from fiscal conservatives wary of the spending implications.

As the feud between two of the world’s most influential figures escalates, it raises broader questions about the future of political alignment, tech influence in government policy, and the role of federal subsidies in shaping corporate power.