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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump says DOGE is a monster that may ‘go back and eat Elon’ | |
By David Goldman and Hadas Gold, CNN | |
Updated: | |
1:33 PM EDT, Tue July 1, 2025 | |
Source: CNN | |
The truce between Elon Musk and President Donald Trump didn’t even | |
last a month. | |
After the Senate narrowly passed a procedural vote to debate Trump’s | |
“Big, Beautiful Bill” over the weekend, Musk on Monday said he | |
would use his vast resources to against Republicans in Congress who | |
voted for the massive domestic policy agenda. Musk spent much of Monday | |
and early Tuesday morning posting and re-posting messages that | |
criticize the tax cut and spending bill — particularly for its | |
sky-high cost. | |
Trump late Monday night fought back, suggesting his administration may | |
investigate Musk’s companies’ massive government contracts. On | |
Tuesday at the White House, Trump said Musk risked losing “a lot | |
more” than government subsidies and threatened that the Department of | |
Government Efficiency that Musk once led may become a monster that will | |
“go back and eat Elon.” | |
So far, the feud hasn’t grown as personal or as vicious as their | |
public blow-up last month when Musk, without providing evidence, of | |
withholding information about disgraced financier and convicted | |
pedophile Jeffrey Epstein, and claiming that Trump’s name was | |
included in the government’s so-called Epstein files. | |
A week after the peak of that feud, some of his posts about Trump. Musk | |
deleted some of his most inflammatory X posts, including the one | |
relating to Epstein and another agreeing with the suggestion that Trump | |
should be impeached. Musk had since softened his tone about Trump and | |
the bill, largely shifting his focus on social media and in interviews | |
to his companies. | |
That shifted dramatically Monday when Musk began posting nonstop about | |
his opposition to Trump’s signature legislation. | |
This time around, Musk seems to be holding himself back from attacking | |
Trump directly. In response to a video of Trump’s comments about have | |
DOGE go after Musk, he , “So tempting to escalate this. So, so | |
tempting. But I will refrain for now.” | |
Still, the fight is costing Musk where it counts: Tesla’s () stock | |
tumbled 7% in Tuesday after losing 2% on Monday, missing out on the | |
broader stock market gains that sent the S&P 500 and Nasdaq to record | |
highs. Much of Musk’s wealth is tied up in Tesla’s publicly traded | |
stock. | |
Tesla shareholders have been very sensitive to the Musk-Trump spat, | |
nervous that Trump may make good on his threat to dissolve contracts | |
with SpaceX or Tesla. The stock lost about 14% on June 4, the day when | |
Musk and Trump’s feud over the spending bill erupted into the public. | |
“This BFF situation has now turned into a soap opera that remains an | |
overhang on Tesla’s stock with investors fearing that the Trump | |
Administration will be more hawkish and show scrutiny around | |
Musk-related US government spending,” said Dan Ives, analyst at | |
Wedbush Securities, in a note to investors Tuesday. “Tesla investors | |
want Musk to focus on driving Tesla and stop this political angle.” | |
Musk goes off | |
Musk’s renewed attacks on the bill started Monday afternoon, when he | |
threatened members of Congress who voted for the legislation. He said | |
the bill would undermine his efforts at DOGE which sought fiscal | |
responsibility by eliminating what he and others viewed as wasteful | |
spending. | |
But the Senate bill would add over the next decade, according to a | |
Congressional Budget Office estimate released Sunday. The Senate | |
legislation costs more than the House-approved bill, which would add | |
$2.4 trillion to the deficit over the next decade. | |
The White House has the bill “slashes deficits” and the debt, while | |
“unleashing economic growth.” Musk wasn’t having it. | |
“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! And they will lose their | |
primary next year if it is the last thing I do on this Earth,” he on | |
X. | |
He later shared a campaign poster with “LIAR” written across | |
Pinocchio’s face above the text “Voted to increase America’s debt | |
by $5,000,000,000,000.” | |
“Anyone who campaigned on the PROMISE of REDUCING SPENDING, but | |
continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will | |
see their face on this poster in the primary next year,” Musk . | |
Musk wrote several posts about called “the America Party,” which | |
would serve as a populist alternative to the Republican and Democratic | |
parties. | |
“If this insane spending bill passes, the America Party will be | |
formed the next day,” Musk . | |
He also posted that to the re-election campaign for Kentucky Rep. | |
Thomas Massie, who has been one of the few Republican voices in | |
Congress to take a stand against the bill. Trump has publicly scolded | |
Massie for his opposition. | |
Trump enters the chat | |
Trump early Tuesday morning responded with a threat: He could use DOGE | |
to probe the government contracts and subsidies Musk’s companies | |
receive. | |
“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,” Trump wrote on . “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!!!” | |
On Tuesday at the White House, Trump said Musk risked serious losses | |
from his opposition to the bill. | |
“He’s upset that he’s losing his EV mandate,” Trump said. “He | |
could lose a lot more than that, I can tell you right now. Elon could | |
lose a lot more than that.” | |
When asked if Trump would want to deport Musk, a US citizen, Trump | |
said, “I don’t know, we’ll have to take a look.” | |
“We might have to put DOGE on Elon,” Trump added. “You know what | |
DOGE is? DOGE is the monster that might have to go back and eat Elon. | |
Wouldn’t that be terrible? He gets a lot of subsidies. Elon’s very | |
upset that the EV mandate is going to be terminated.” | |
Trump made a similar suggestion last month. Although it’s not clear | |
that Trump would follow through, Musk’s companies are reliant on the | |
federal government as a major source of revenue. And Tesla, SpaceX and | |
Musk’s other companies, including social media platform X, artificial | |
intelligence company xAI and brain-computer interface company Neuralink | |
all face regulation from the federal government. | |
Unlike SpaceX, which makes the bulk of its money from the government, | |
Tesla has relatively few government contracts. But numerous federal | |
policies directly affect Tesla’s finances, including a $7,500 tax | |
credit for electric vehicle buyers that allows Tesla and other | |
automakers to raise prices. The tax credit has also has helped boost EV | |
sales. That was likely worth billions to Tesla last year alone. | |
Tesla also reported more than $8 billion in sales over six years of | |
regulatory credits to other automakers to help them comply with federal | |
and state emission standards. Trump is in favor of rolling back those | |
standards and stripping states of the power to set their own emissions | |
rules, which would destroy the market for those credit sales. | |
The loss of the EV tax credit could cost Tesla $1.2 billion a year and | |
the loss of regulatory credit sales another $2 billion, according to | |
JPMorgan. | |
“At the end of the day being on Trump’s bad side will not turn out | |
well, and Musk knows this,” Ives wrote. | |
Trump has argued that Musk’s primary opposition to the Big, Beautiful | |
Bill is the loss of EV tax credits. Musk denies that, retweeting a post | |
Monday that said, “Elon’s opposition to the ‘One Big Beautiful | |
Bill’ has never been about its removal of EV tax credits or the EV | |
mandate, it’s simply about his passionate opposition to rising | |
government debt.” | |
“All I’m asking is that we don’t bankrupt America,” Musk . | |
What happens next? | |
It’s unclear whether Musk’s threats will kill the bill’s chances. | |
Trump has mounted a massive pressure campaign on holdouts, putting | |
members of Congress in a difficult position of choosing Musk and his | |
war chest of cash or Trump and his bully pulpit. | |
Musk spent more than $275 million to support Trump and other Republican | |
candidates in the 2024 election. According to Federal Election | |
Commission filings, Musk’s political action committee, America PAC, | |
last gave money in March to support two Republican candidates running | |
in special elections in Florida — Randy Fine and Jimmy Patronis. In | |
late May he said in an interview he was planning to cut back on | |
political spending, saying he has “done enough.” | |
But Musk has the resources to make good on his promises to support a | |
slate of alternate candidates if he chooses. | |
That doesn’t guarantee he’ll succeed: Musk spent considerable time | |
and resources in a losing effort to elect a Republican to Wisconsin’s | |
supreme court earlier this year. His popularity remains low, and, | |
ultimately, Donald Trump is president, and Musk is not. | |
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