Trump-Musk Feud Ignites: Tesla Subsidies Slashed, America Party Launch Looms

In a dramatic escalation of tensions, former President Donald Trump has hinted at deporting Tesla CEO Elon Musk while confirming plans to slash electric vehicle (EV) subsidies, a move that could significantly impact Tesla’s operations. Musk, never one to shy away from a challenge, fired back with a bold promise to launch the “America Party” if Trump’s proposed “Big Beautiful Bill” passes. This explosive exchange has set the stage for a high-stakes political and economic showdown, capturing global attention. Here’s everything you need to know about this unfolding saga.

Trump’s Deportation Jab and Subsidy Cuts

During a recent interview, a reporter pressed Trump on whether he intends to deport Elon Musk, the South African-born tech mogul who has become a polarizing figure in American politics. Trump’s response was characteristically provocative:

“We’ll have to take a look. We will cut Tesla subsidies. Then Elon would probably head back home to South Africa.”

The comment, laced with Trump’s signature blend of bravado and ambiguity, has sparked widespread speculation about the future of Tesla’s government-backed incentives and Musk’s status in the U.S. Posts on X reflect a mix of outrage and support, with some users accusing Trump of targeting Musk unfairly, while others cheer the potential reduction of EV subsidies.

Trump’s mention of subsidy cuts refers to federal tax credits and incentives that have bolstered the EV industry, including Tesla, for years. These subsidies, part of broader clean energy initiatives, provide up to $7,500 per vehicle for qualifying EV buyers. Slashing them could raise Tesla’s prices, potentially denting its market share in a competitive landscape. The “Big Beautiful Bill,” though vaguely defined, appears to be a legislative package aimed at reducing government spending, including EV incentives, which Trump has criticized as wasteful.

Musk’s Fiery Response: “Cut It All!” and America Party Threat

Elon Musk, known for his unfiltered presence on X, didn’t hesitate to clap back. In a fiery post, he declared:

“Cut it all !! We will definitely launch America Party if this big beautiful bill is passed.”

Musk’s response is a double-edged sword: a defiant acceptance of subsidy cuts and a provocative tease of a new political venture, the “America Party.” While Musk has previously floated the idea of a political movement rooted in innovation, free speech, and American exceptionalism, this is the first time he’s explicitly tied it to Trump’s policy agenda. The mention of the America Party has ignited a firestorm of speculation, with X users debating whether Musk is serious or simply trolling.

The America Party, if launched, could position Musk as a direct political rival to Trump, leveraging his massive following and influence. With over 200 million followers on X, Musk’s platform gives him unparalleled reach to shape public discourse. Some analysts suggest the party could appeal to tech-savvy, libertarian-leaning voters disillusioned with traditional politics, while others view it as a long shot given the entrenched two-party system.

The Stakes for Tesla and the EV Industry

The potential loss of EV subsidies could have far-reaching implications for Tesla and the broader electric vehicle sector. Tesla, which reported a market capitalization of over $1 trillion in 2025, has benefited significantly from federal and state incentives that make its vehicles more affordable. Without these subsidies, Tesla may face increased pressure from competitors like Rivian, Lucid, and Chinese automakers like BYD, who are rapidly expanding in the U.S. market.

However, Musk’s “cut it all” stance suggests confidence in Tesla’s ability to thrive without government support. Tesla’s vertical integration, advanced battery technology, and global production capabilities could cushion the blow, but analysts warn that higher prices could alienate budget-conscious consumers. Posts on X highlight mixed sentiments, with some praising Musk’s resilience and others questioning whether Tesla can maintain its dominance without subsidies.

Political and Cultural Ramifications

The Trump-Musk feud transcends economics, tapping into deeper cultural and political divides. Musk, a vocal advocate for free speech and deregulation, has increasingly aligned with conservative causes, yet his globalist outlook and immigrant background make him a complex figure. Trump’s deportation remark, while likely rhetorical, plays into ongoing debates about immigration policy and the treatment of high-profile figures like Musk, who became a U.S. citizen in 2002.

The idea of an America Party adds another layer of intrigue. Musk’s vision for such a party remains unclear, but his past statements suggest it could prioritize technological innovation, space exploration, and economic freedom. On X, some users speculate that the party could draw support from disaffected Republicans and independents, while others dismiss it as a publicity stunt.

What’s Next?

As the “Big Beautiful Bill” moves through legislative channels, all eyes are on Trump and Musk. Will Trump follow through on his threat to cut subsidies, and could he escalate his rhetoric to target Musk’s immigration status? Will Musk make good on his promise to launch the America Party, potentially reshaping the political landscape? The answers remain uncertain, but the feud has already galvanized public attention.

For now, Tesla investors and EV enthusiasts are bracing for potential market shifts, while political observers are buzzing about Musk’s next move. One thing is clear: this clash of titans is far from over, and its ripple effects could redefine America’s economic and political future.

Stay tuned to NRI Globe for the latest updates on this developing story, and follow us on X for real-time reactions and analysis.

Keywords: Trump Musk feud, Tesla subsidies, America Party, Elon Musk deportation, Big Beautiful Bill, electric vehicle incentives, U.S. politics, Tesla stock, EV industry, Musk political party