The conflict between U.S. President Donald Trump and billionaire Elon Musk is escalating. The President has called on the Department of Government Efficiency (DOGE), which was established by Musk himself, to conduct an audit of the government subsidies provided to the businessman’s companies.
This is reported by Finway
Reasons for the Escalation of the Conflict
The standoff between Trump and Musk has intensified amid discussions of the massive budget bill “One Big Beautiful Bill,” which proposes raising the U.S. debt ceiling by $5 trillion. Musk has openly opposed this initiative, claiming it only exacerbates the financial burden on the country.
In public statements, Musk has asserted that without his support, Trump would not have won the presidency. Against this backdrop, in June 2025, the Bitcoin market reacted with a correction, and the tension between the two influential figures only increased.
EV Mandate, Audits, and Elon Musk’s Position
A separate role in the conflict has been played by California’s legislative initiative, the EV Mandate, which called for a gradual phase-out of internal combustion engine vehicles in favor of electric cars. This policy was supported by the Biden administration; however, on January 20, 2025, Trump rescinded it with an executive order.
During public appearances, Donald Trump emphasized:
“Elon Musk knew long before he supported me for the presidency that I was against the EV Mandate. It’s nonsensical, and its repeal was part of my campaign. Electric vehicles are good, but we shouldn’t force everyone to buy them. Elon has received more subsidies than anyone in the world. Without them, he’ll have to ‘close up shop’ and go back home to South Africa.”
The President also questioned the rationale behind government spending to support Musk’s companies:
“No more rocket launches, satellites, electric car production, and our country will save a fortune. Maybe we need to instruct DOGE to conduct a thorough audit of all this?”, Trump stated.
It is worth noting that DOGE is a division created at Musk’s initiative, which he led for some time. In May 2025, Musk stepped down as head of DOGE to focus on developing his own business.
In response, Elon Musk emphasized in an interview for Tesla Owners Silicon Valley that his position on the budget bill is in no way related to the repeal of the EV Mandate or government incentives for electric cars. He stated:
“Abolish all incentives in this sector tomorrow, and Tesla’s competitive position will only improve.”
Despite this, the conflict has impacted Tesla’s stock prices. Following the President’s latest statements, the company’s shares fell another 10%, opening below the $300 mark at the beginning of the trading session on July 1, 2025.
Amid the standoff, Musk continues to develop his businesses. Recently, his company xAI raised $10 billion for artificial intelligence project development.