The war of words between former President Donald Trump and tech billionaire Elon Musk has escalated dramatically following the proposal of a $5 trillion spending bill aimed at raising the U.S. debt ceiling.
The feud, already simmering in past months, has now boiled over into open threats, political division, and public attacks with national implications.
Musk Blasts Bill as “Insane,” Threatens to Launch “America Party”
Elon Musk, CEO of Tesla and SpaceX, has publicly condemned the bill, calling it “insane” and accusing both major political parties of irresponsible spending.
In a series of posts on X (formerly Twitter), Musk warned that if the bill passes, he will consider launching a new political party dubbed the "America Party," which he claims will return the U.S. to fiscal conservatism and “common sense governance.”
Musk has also pledged to fund and support primary challengers against Republicans who back the spending measure. “If you're selling out the future of our country for short-term gain, you're not a conservative,” Musk wrote. “You're a fraud.”
Trump Threatens Subsidy Cuts to Tesla and SpaceX
Never one to back down from a challenge, Donald Trump quickly responded with sharp criticism and thinly veiled threats.
Speaking at a rally, Trump accused Musk of being the largest recipient of government subsidies in history and suggested that without those billions in funding, Musk would be forced to "shut down and head back to South Africa."
Trump further implied that Tesla and SpaceX may be cut off from future federal contracts if Musk continues to oppose the GOP’s agenda. “You like building rockets and electric cars? Try doing it without American tax dollars,” Trump said.
The former president even revived a reference to the Department of Government Efficiency (DOGE), an agency Musk jokingly claimed to have founded, to investigate how much taxpayer money has flowed to Musk’s companies.
Musk Fires Back: “CUT IT ALL. Now.”
Not backing down, Musk dared Trump to follow through. “CUT IT ALL. Now. Tesla and SpaceX will be just fine,” Musk posted online, claiming that both companies can operate without taxpayer money. He reiterated that his opposition to the bill is not personal but based on principles of economic sustainability.
“Debt-fueled growth is a mirage. Real innovation doesn’t need bailouts,” Musk added, slamming the spending bill as a betrayal of conservative economic values.
Political Fallout: GOP Tensions Rise
The feud has caused visible fractures within the Republican Party. Some Trump allies have sided with Musk, voicing concerns over the bill’s scale and the rising national debt. Others have backed Trump’s criticism of Musk, portraying him as a billionaire trying to manipulate the political system to serve his own interests.
As Trump maintains a dominant hold over the Republican base, Musk's influence among independents, libertarians, and tech-savvy younger voters may reshape parts of the political conversation leading into 2026 and beyond.
Business Stakes Are High
Beyond politics, the dispute could have real consequences for Musk’s companies. Tesla has benefited from billions in electric vehicle tax credits, and SpaceX holds lucrative government contracts with NASA and the Pentagon. Any shift in federal policy under a potential Trump administration could jeopardize these funding streams.
However, Musk has argued that his companies are now robust enough to operate independently. Tesla no longer needs subsidies. SpaceX wins contracts because we deliver results,” he stated confidently.
A Battle of Billionaire Egos or a Sign of Political Realignment?
This highly publicised conflict between Donald Trump and Elon Musk is more than a clash of billionaire personalities; it may signal a deeper political realignment.
As Musk distances himself from both Democrats and the Trump-led GOP, his push for an “America Party” could inspire disaffected voters seeking a third option.
Whether this feud ends in reconciliation, retaliation, or real political change remains to be seen. But for now, America’s most powerful ex-president and its most outspoken entrepreneur are on a collision course, with billions, and perhaps the next election, at stake.
