Written by: Li Xiaoyin, Wall Street Insights
Musk again blasts the "Big Beautiful Bill," with Trump firing back, and the "Trump-Musk" mutual attack drama unfolds once more!
On July 1st local time, Trump attacked Musk on Truth Social, claiming he might have received more subsidies than anyone in history, and without these subsidies, he might have gone out of business and "returned to his home in South Africa".
Trump stated:
"Musk knew long before strongly supporting my presidential campaign that I was firmly against mandatory electric vehicle policies. This policy is ridiculous and has always been a key issue in my campaign. There's nothing wrong with electric vehicles, but people shouldn't be forced to own one. Musk may have received more subsidies than anyone in history, and without these subsidies, he might have gone out of business and returned to his home in South Africa. There would be no rocket launches, satellite projects, or electric vehicle production, and our country could save a lot of money. Perhaps we should let DOGE carefully examine this issue? This could save massive funds!!!"
Subsequently, Musk quickly responded on the X platform: "Cut everything, right now."
Musk stated: "I'm just asking not to let America go bankrupt. What's the point if we keep raising the debt ceiling?"
As the Trump-Musk "confrontation" escalates, Tesla's stock plummeted, with nighttime trading dropping nearly 7%.
Less than Half a Month after Reconciliation, "Trump-Musk" Clash Again
Earlier in early June, Musk criticized the congressional spending bill as "nauseating" on his social media platform X and called on lawmakers to withdraw support. Trump subsequently fired back, suggesting a review of Tesla and its subsidiaries' government subsidies and contracts, saying, "I'm very disappointed, and it's hard to say how long our relationship can last."
This war of words ended in reconciliation on June 12th, with Trump "liking" Musk's apology after Musk backtracked, stating "I think he did well." However, Trump did not clearly indicate whether he was willing to make amends with Musk.
According to a Wall Street Insights article, on the 29th, the US Senate, after intense negotiations, passed an updated version of Trump's "Big Beautiful Bill" with 51 votes in favor and 49 against, prematurely canceling the $7,500 tax credit for electric vehicle purchases.
This again triggered Musk's dissatisfaction. That day, Musk strongly criticized the "Big Beautiful Bill," saying that cutting electric vehicle and clean energy subsidies would destroy America's future industries, eliminate millions of jobs, be political suicide for the Republican Party, and cause "incredible destruction" to the United States.
This Monday, Musk continued to threaten that "every congressman who promised to reduce government spending during their campaign and then immediately voted to support the largest debt increase in history should be ashamed" and vowed to defeat them in next year's midterm elections.
