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Trump suggests DOGE review Musk's subsidies for savings

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Musk criticizes tax-cut bill, calls for new political

party

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Feud with Trump causes Tesla stock volatility

By Nandita Bose, Kritika Lamba

WASHINGTON, July 1(Reuters) - U.S. President Donald

Trump suggested on Tuesday that his efficiency department should

take a look at the subsidies that Tesla CEO Elon Musk's

companies have received in order to save the federal government

"BIG" money.

Trump's comments come after billionaire Elon Musk renewed

his criticism on Monday of Trump's sweeping tax-cut and spending

bill, vowing to unseat lawmakers who backed it after campaigning

on limiting government spending.

"Elon may get more subsidy than any human being in history,

by far, and without subsidies, Elon would probably have to close

up shop and head back home to South Africa. No more Rocket

launches, Satellites, or Electric Car Production, and our

Country would save a FORTUNE. Perhaps we should have DOGE take a

good, hard, look at this? BIG MONEY TO BE SAVED!!!," Trump said

in a post on Truth Social.

In response to Trump's post, Musk, in his own social media

platform X, said "I am literally saying CUT IT ALL. Now."

After weeks of relative silence following a feud with Trump over

the legislation, Musk rejoined the debate on Saturday as the

Senate took up the package, calling it "utterly insane and

destructive" in a post on social media platform X.

On Monday, he ramped up his criticism, saying lawmakers who

had campaigned on cutting spending but backed the bill "should

hang their heads in shame!"

"And they will lose their primary next year if it is the

last thing I do on this Earth," Musk said.

The Tesla and SpaceX CEO called again for a new political

party, saying the bill's massive spending indicated "that we

live in a one-party country - the PORKY PIG PARTY!!"

"Time for a new political party that actually cares about

the people," he wrote.

Musk's criticism of the bill has caused a rift in his

relationship with Trump, marking a dramatic shift after the tech

billionaire spent nearly $300 million on Trump's re-election

campaign and led the administration's controversial Department

of Government Efficiency (DOGE), a federal cost-cutting

initiative.

Musk, the world's richest man, has argued that the

legislation would greatly increase the national debt and erase

the savings he says he has achieved through DOGE.

It remains unclear how much sway Musk has over Congress or

what effect his opinions might have on the bill's passage. But

Republicans have expressed concern that his on-again, off-again

feud with Trump could hurt their chances to protect their

majority in the 2026 midterm congressional elections.

The rift has also led to volatility for Tesla, with shares

of the company seeing wild price swings that erased

approximately $150 billion of its market value, though it has

since recovered.