Donald Trump Threatens Elon Musk with Expulsion: Why Is Their Feud Escalating?
- Trump and Musk: A Spectacular Political Divorce
- Why Is Trump Targeting Musk?
- The Subsidy War: A Financial and Political Battle
- Market Fallout: Tesla and Crypto in Turmoil
- Could Musk Bet Everything on Bitcoin?
- FAQ: Trump vs. Musk Feud Explained
The once-strong alliance between Donald Trump and Elon Musk has devolved into a bitter public feud, with Trump now threatening Musk's potential expulsion from the U.S. The conflict centers around Musk's opposition to Trump's "One Big Beautiful Bill," a controversial spending package that could slash electric vehicle (EV) subsidies—a move that would directly impact Tesla. Meanwhile, the fallout has spilled into the crypto markets, with dogecoin and Tesla stocks taking significant hits. This article dives into the political and financial tensions fueling this high-stakes battle.
Trump and Musk: A Spectacular Political Divorce
Just months ago, Elon Musk was a key TRUMP ally, even leading the Department of Government Efficiency (nicknamed DOGE) after Trump's 2024 election victory. Their partnership seemed unshakable—until Musk publicly criticized Trump's "One Big Beautiful Bill," a sweeping $1.2 trillion spending package aimed at streamlining government expenses over nine years. Musk called it a "reckless spending project" and accused Republicans of being a "single party of gluttonous pigs." The bill also proposes cutting EV tax credits, a direct blow to Tesla, which is already struggling due to Musk's erratic behavior and market volatility.
Why Is Trump Targeting Musk?
On July 1, 2025, Trump hinted at drastic measures against Musk during a WHITE House press briefing. When asked about their rift, Trump ominously stated, "We’ll have to look into that," referencing Musk's South African origins and U.S. citizenship. He further mocked Musk, saying he’s "losing his mandate for electric vehicles." Analysts speculate Trump’s threats are retaliation for Musk’s opposition to the bill, which could save the government billions but cripple Tesla’s sales.
The Subsidy War: A Financial and Political Battle
The heart of the conflict lies in EV subsidies. The Senate is currently reviewing a provision to eliminate the $7,500 federal tax credit for EV purchases—a move that would save taxpayer money but devastate Tesla’s already shaky market position. Trump quipped, "We might have to put DOGE on Elon. DOGE is the monster that might have to come back to eat Elon. Wouldn’t that be terrible?" This jab references Dogecoin, a cryptocurrency Musk has famously promoted, now caught in the crossfire.
Market Fallout: Tesla and Crypto in Turmoil
The feud has sent shockwaves through financial markets. Tesla’s stock plummeted 13% in a week, while Dogecoin dropped 6% in just 12 hours. Investors are scrambling as political instability compounds existing volatility in both the auto and crypto sectors. The BTCC team notes that such clashes between high-profile figures often trigger short-term market panics but rarely alter long-term trends.
Could Musk Bet Everything on Bitcoin?
With Tesla’s future uncertain, rumors swirl that Musk might pivot toward Bitcoin. His past endorsements have already swayed crypto markets, and a full-scale shift could redefine his financial strategy. However, no official announcements have been made, leaving investors to speculate.
FAQ: Trump vs. Musk Feud Explained
What started the feud between Trump and Musk?
The conflict began when Musk opposed Trump’s "One Big Beautiful Bill," which cuts EV subsidies and could harm Tesla.
Why is Trump threatening Musk’s expulsion?
Trump suggested reviewing Musk’s citizenship status, likely as retaliation for Musk’s criticism of his policies.
How has the feud affected Tesla and Dogecoin?
Tesla’s stock fell 13%, and Dogecoin dropped 6% amid the public spat.
Could Musk move Tesla into Bitcoin?
While unconfirmed, Musk’s history with crypto makes this a plausible—but speculative—scenario.
