In the aftermath of his departure from the Department of Government Efficiency, Elon Musk restarted his feud with President Donald Trump on Monday over the president’s “big, beautiful bill.”
Weeks after criticizing Trump’s domestic policy agenda and calling on Republicans to “kill” the bill, and later walking back some of his comments, Musk reignited his opposition to the legislation, threatening to start a new political party and oppose those who backed the One Big Beautiful Bill Act in Congress. Less than 24 hours later, the Senate passed the bill, with Vice President JD Vance casting the tiebreaking vote and sending the bill back to the House for consideration.
In response, Trump threatened to pull support from Musk’s companies, notably SpaceX and Tesla, and cancel their government contracts. The question is: Can he do that?
How did the feud escalate?
In a post on X Monday afternoon, Musk reupped his criticism of the bill, saying, “It is obvious with the insane spending of this bill which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country—the PORKY PIG PARTY!! Time for a new political party that actually cares about the people.”
What made it into the Senate’s final ‘big, beautiful bill’ and what didn’t
Musk called for the “America Party” if the “insane spending bill passes” and tagged Reps. Andy Harris (R-MD) and Rep. Chip Roy (R-TX), threatening to back primary challengers to those who voted to support the bill.
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” he wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.”
Shortly after midnight on Monday, Trump responded to Musk on Truth Social, threatening Musk with deportation and government cuts to his companies.
“Elon Musk knew, long before he so strongly endorsed me for president, that I was strongly against the EV mandate,” Trump posted. “It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more rocket launches, satellites, or electric car production, and our country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
Where did the feud start?
The latest barbs between Trump and Musk are not the first time the two have sparred in recent weeks, and this is not Trump’s first time around threatening to cancel Musk’s federal contracts and subsidies.
In early June, Musk took many congressional Republicans by surprise when he slammed Trump’s “big, beautiful bill” as a “disgusting abomination” and demanded a new spending bill. His chief objections centered on projections that the legislation would add to the deficit and cut electric vehicle subsidies, putting a wrench in his plans for his companies.
Trump responded by threatening to sever Musk’s federal contracts. Musk then suggested SpaceX would begin to decommission its Dragon spacecraft immediately. The government is heavily dependent on the spacecraft, which makes trips to the International Space Station to resupply it, and on SpaceX, which will provide key space capabilities for Trump’s Golden Dome initiative.
Only a few hours later, Musk took back his decision on X and withdrew some of his earlier criticism, seemingly cooling some of the tensions between him and the president.
The feud cost Musk: He lost $34 billion of his personal net worth in his first public dispute with Trump, the second-largest single-day wealth loss ever recorded on the Bloomberg Billionaires Index. As of Monday, Musk’s total net worth has dropped $24 billion since May 27, the day before he left the Trump administration as a special government employee.
How much do Musk’s companies benefit from the government?
Both SpaceX and Tesla have been prominent beneficiaries of government subsidies and contracts, receiving tens of billions of dollars in funds since their establishment.
Tesla’s government funding is tied to EV credits and energy infrastructure, while SpaceX has emerged as a crucial contributor for NASA and the Space Force, most prominently from the Dragon spacecraft and developing a moon lander.
Musk and his firms have received $38 billion in funding through government contracts, loans, subsidies, and tax credits over the course of two decades, which helped propel their growth, according to an analysis by the Washington Post.
The analysis also found that almost two-thirds of that funding was allocated to Musk’s companies within the last five years. In 2024 alone, federal and local governments provided $6.3 billion to Tesla and SpaceX — the highest amount to date. SpaceX has received $1 billion in government funding each year since 2016, and between $2 billion and $4 billion a year from 2021 to 2024. Tesla has received more than $1 billion a year since 2020.
These totals do not include funding from private sources, such as classified contracts for defense and intelligence activities, the Washington Post reported.
In another report from Reuters, the Defense Department provided a contract to SpaceX to develop spy satellites. The contract is $1.8 billion, according to company documents.
According to federal spending and contract data, SpaceX has received over $20 billion in government contracts and funding commitments since 2008, and nearly $9 billion has been paid out. This includes contracts with NASA and other U.S. agencies, such as the Commerce Department and the Department of Veterans Affairs. The total value of SpaceX contracts could rise to more than $89 billion if completed, according to the Independent.
Tesla makes less from government contracts and awards. USASpending.gov shows the company has received $4.5 million due to solar power generation or purchasing government vehicles.
Additionally, Tesla benefits from tax credits given to customers to buy its cars, receiving an estimated $3.4 billion. Government regulations have also mandated profits from selling emission credits to other polluting carmakers. Tesla received an estimated $10.7 billion from this exchange.
Can Trump legally defund Musk’s companies?
Legally, Trump cannot simply defund or strip Musk’s companies of government support. What he can do, however, is curb their federal contracts.
The president lacks the appropriations power to cut tax credits or subsidies. He can, though, propose temporary delays or permanent cancellations to Congress. To fully defund Tesla or SpaceX, Congress would have to repeal the subsidies or defund them in a new budget.
If Trump tried to bypass Congress, he would be restricted by the Impoundment Control Act, which bars withholding appropriated funds. It became law in 1974 after President Richard Nixon impounded funds for programs he opposed. The Government Accountability Office oversees the president’s compliance with the law and can take legal action if he tries to withhold funds.
Trump has moved to assert more executive power over independent federal agencies. In February, he signed an executive order directing independent agencies to regularly consult with the White House and forcing them to submit regulations for review. But despite its influence, the order cannot rewrite the law or defund programs.
Is cutting those government contracts even feasible?
In practice, cutting ties with Musk’s companies would be complicated. Tesla and SpaceX have tens of billions of dollars in agreements, and terminating them could cause serious consequences and national security risks for the United States in areas including defense, space, and transportation. The U.S. military alone heavily depends on SpaceX to help launch satellites into orbit, assist communications, spy on foreign countries, and ensure the functioning of GPS.
SpaceX is also involved with building spy satellites for the Pentagon. Defunding the company could lead to national security implications and possible backlash from the intelligence community, according to Reuters.
When Trump threatened Musk’s companies in early June, Rep. Thomas Massie (R-KY) dismissed the idea that the government would cancel contracts.
“I’m [not] going to comment on who’s right or wrong,” Massie told reporters on June 5. “But [Trump’s] not going to take away our only way to get to the Space Station [and] back. I mean, that’s ridiculous.”
MUSK PRAISES TRUMP ON FOREIGN POLICY DESPITE TENSIONS REIGNITING OVER ‘BIG, BEAUTIFUL BILL’
Even if Trump did find a way to pull government support for Musk’s companies, Musk has the financial capabilities and resources to bounce back, Fordham University professor Paul Levinson told NPR.
“Musk has ample resources to sustain those losses, reshuffle and rebuild his companies and holdings, and come out ahead and on top,” Levinson said. “Bottom line: If all the Trump government does in its feud with Musk is attack his financial interests, Musk is very likely to not only survive but continue to thrive.”