US President Donald Trump has issued a warning to Elon Musk, threatening to impose additional subsidies on Tesla, his former ally, suggesting he might have to close up shop and head back home to South Africa.This statement follows Musk's announcement of plans to support the creation of a new political party in the U.S. aimed at challenging the two major parties: the Republicans and Democrats.
During a Senate discussion on President Trump's "Big, Beautiful Bill" on Monday, Musk took to his social media platform X to deliver a strong message.
"Every member of Congress who campaigned on cutting government spending and then immediately voted for the largest debt increase in history should feel ashamed! They will lose their primary next year if it’s the last thing I do on this Earth," he said.
A few hours later, he escalated his remarks on X, asserting that if the "insane spending bill passes, the America Party will be established the very next day."
"Our nation requires an alternative to the Democrat-Republican uniparty so that the citizens truly have a VOICE," he added.
In response, Trump has countered Musk's statements, threatening to take measures against the tech mogul.
"Elon Musk was aware, long before he endorsed me for President, that I was firmly opposed to the EV Mandate," the president shared on Truth Social early Tuesday.
"It’s absurd, and it was always a key aspect of my campaign. Electric vehicles are acceptable, but not everyone should be compelled to own one."
The commander-in-chief then cautioned the SpaceX founder that if his government subsidies were revoked, he would have no option but to return to South Africa.
"Elon may receive more subsidies than any individual in history, and without them, he would likely have to shut down operations and go back to South Africa," Trump remarked.
"No more rocket launches, satellites, or electric car production, and our country would save a fortune ."
Trump mentioned that he might use DOGE to scrutinize Musk's government subsidies.
"Maybe we should have DOGE conduct a thorough investigation into this? HUGE SAVINGS AHEAD!!!" Trump finished.
The legislation, currently in the hands of the Republican-led Senate, faces significant opposition from Democratic legislators who contend that it will offer tax breaks to the wealthy, reduce healthcare and Medicaid for more than one million low-income Americans, and cut school meal programs for millions of children from disadvantaged backgrounds.