A fresh clash between U.S. President Donald Trump and Tesla CEO Elon Musk has sent ripples through financial markets, as Tesla shares dropped by 5% on Tuesday following a scathing public statement from Trump.
The confrontation unfolded on Trump’s social media platform, Truth Social, where the president labeled Musk “the person who received the most government subsidies in history” and called on the Department of Government Oversight and Ethics (DOGE) to investigate Musk’s federal contracts and financial ties.
“Without the subsidies, Allen would probably have had to close his company and go back to South Africa,” Trump wrote, using a mocking misspelling of Musk’s name.
Trump’s remarks come amid rising political tensions over electric vehicle (EV) policies. He has consistently opposed federal EV mandates and accused Musk of hypocrisy for benefiting from such programs while criticizing government overreach.
Musk, for his part, has publicly denounced the controversial GOP-led “Big Beautiful Bill”—a key legislative effort spearheaded by Trump—calling it “absolutely devastating” and warning that it could “put millions of jobs at risk.”
According to a February report by The Washington Post, Musk’s companies—including Tesla, SpaceX, and others—have received more than $38 billion in public funding over the past two decades. This includes grants, tax incentives, loans, and federal contracts, fueling debate over the role of government support in Musk’s rise as a tech titan.
Trump’s renewed focus on Musk’s financial history appears to be part of a broader effort to discredit critics of his administration's economic policies, particularly those in the tech and clean energy sectors.