U.S. President Donald Trump has called for a review of federal subsidies to Tesla and other Elon Musk-led ventures, escalating a growing political clash that wiped billions from Tesla’s market value and reignited debates on tech industry favoritism.

In a Truth Social post, Trump urged the Department of Government Efficiency (DOGE) to examine Musk’s subsidies, saying, “Elon may get more subsidy than any human being in history.” The president implied that terminating support could shut down SpaceX launches and Tesla production: “Our country would save a FORTUNE.”

Musk shot back on his platform X, writing, “I am literally saying CUT IT ALL. Now.”

Markets React: Tesla Shares Tumble

Tesla stock plunged over 6% in premarket trading, as investors feared new regulatory obstacles, particularly for Tesla’s autonomous robotaxi project. The U.S. Transportation Department, which regulates vehicle safety, is seen as crucial to approving Tesla’s plan for steering-wheel-free vehicles.

The rift reignites earlier tensions: a June clash over Trump’s $3 trillion tax-cut bill saw Musk’s criticism trigger a $150 billion drop in Tesla’s market value. Although Musk later tempered his remarks, this new outburst has renewed fears of retaliation.

Musk Slams GOP Spending: “One-Party Country”

Musk, once Trump’s top mega-donor, resumed attacks on Republicans over the weekend, branding their tax and spending bill “insane and destructive.” He accused lawmakers of hypocrisy and vowed to unseat those who backed the bill: “They will lose their primary next year if it’s the last thing I do.”

He mocked both parties, calling the political system the “PORKY PIG PARTY,” and reiterated calls for the formation of a new political party.

Fallout for Tesla, SpaceX—and the GOP

Tesla’s June sales dropped for the sixth consecutive month in Sweden and Denmark. U.S. second-quarter delivery figures, expected this week, may further reflect waning consumer demand amid political turbulence.

Musk’s federal footprint is vast: SpaceX holds over $22 billion in contracts, and Tesla’s future hinges on regulatory approval and subsidies. Analysts say Trump holds the upper hand. “Musk needs Trump, Trump does not need Musk,” said strategist Dennis Dick.

Some Republicans now worry the feud could damage their standing ahead of the 2026 midterms. Musk, for his part, shows no sign of backing down.