Billions at Stake: Trump and Musk Clash Over Federal Spending and Electric Vehicle Incentives

US President Donald Trump has claimed that Doge, the agency Elon Musk helped create to reduce government costs, might be used to damage Musk's companies. This happens as Trump and Musk exchange blows publicly over the president’s budget plans.

Trump wrote on social media that Elon may receive more subsidies than anyone else ever has and suggested Doge should review this. He added, "BIG MONEY TO BE SAVED!!!" Musk responded quickly, saying, "I am literally saying CUT IT ALL. Now."

Musk has often criticized Trump’s so-called "big, beautiful bill," arguing that it weakens efforts to cut government spending. Their public feud started last month with harsh comments from both sides, though Musk later took back some of his criticisms. Congress is now voting on Trump’s bill. The Republican majority controls both chambers, but some GOP members have opposed it, siding with Democrats.

The DOGE Threat and the "Big, Beautiful Bill"

The bill proposes more spending on border security, defense, and energy. It also plans to cut healthcare and food programs, which has sparked controversy. Musk was in charge of Doge—short for the Department of Government Efficiency—until he left after clashing over the bill.

Trump suggests Musk's complaints relate to a part of the bill that would cut incentives for buying electric cars like those Musk makes. Trump also threatened to take away subsidies that benefit Musk’s companies. On Tuesday, Trump told reporters that Musk is upset because he is losing his advantage with electric vehicles and could lose much more. Trump said, "Doge might have to go back and eat Elon. He gets a lot of subsidies."

Debt, Political Backlash, and Musk's Stance

Musk says he wants to cut government spending. If Trump’s bill passes, it would add about 3.3 trillion dollars to the national debt. While voting was happening, Musk posted a graph showing US debt rising over time with the caption: "When are they going to flatten this curve?"

He also criticized Congress members who campaigned to reduce spending but then voted for a big debt increase. Musk said he will help ensure they lose their seats next year. Last year, Musk spent hundreds of millions supporting Trump’s re-election. He has even talked about starting a new party to challenge both Democrats and Republicans.

Subsidies and Tesla's Position

In response to Trump’s claim about electric vehicle incentives, Musk reposted a clip from an interview. In it, Musk said getting rid of those incentives would greatly improve Tesla’ss tanding.