Trump hints at deporting Elon Musk amid clash over subsidies and tax bill

U.S. President Donald Trump reignited his long-running feud with Elon Musk on Tuesday, suggesting that the Tesla and SpaceX CEO may face deportation while calling for a sweeping review of federal subsidies granted to Musk’s companies.

In a Truth Social post, Trump said, “Elon may get more subsidy than any human being in history... Without subsidies, Elon would probably have to close up shop and head back home to South Africa.” The statement has been widely interpreted as a veiled deportation threat and came as Trump proposed that the Department of Government Efficiency (DOGE) evaluate Musk’s federal benefits.

The clash emerged amid Musk’s continued criticism of a newly passed tax-cut and spending bill. Musk, a major Republican donor, denounced the legislation as fiscally irresponsible and vowed to unseat lawmakers who supported it. "CUT IT ALL. Now," Musk posted on X, calling for an end to all subsidies, including those that benefit his own companies.

Tesla shares dropped over 6% before market open on Tuesday, with analysts warning that further political instability could derail Musk’s ambitions — particularly Tesla’s controversial self-driving robotaxi project, which is awaiting regulatory approval.

The feud also threatens to divide Republican ranks ahead of the 2026 midterms. Despite Musk having spent nearly $300 million on Trump's re-election campaign and helping launch the administration’s DOGE initiative, their alliance appears to be unraveling.

Musk’s recent calls for a new political party and his rebuke of “PORKY PIG PARTY” lawmakers have further escalated tensions. With federal contracts worth billions on the line, Trump’s remarks raise the stakes for one of the most powerful figures in American business.