The escalating confrontation between Elon Musk and President Donald Trump reached new heights Monday as the Tesla CEO threatened to establish a new political party while the president warned of potential government efficiency investigations into the billionaire's federal subsidies. The dispute centers around Trump's major spending legislation that Musk characterized as historically destructive debt expansion.
Following his recent announcement about withdrawing from political activities, Musk immediately re-entered the fray as lawmakers debated Trump's comprehensive policy package, CNN reported. The world's richest individual used his X platform to deliver an ultimatum to congressional Republicans who had pledged fiscal responsibility during their campaigns.
"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," Musk declared on his social media platform, according to CNN.
The SpaceX founder escalated his rhetoric hours later by announcing plans for an entirely new political organization if the legislation advances through Congress. His subsequent post indicated immediate action would follow any passage of what he termed excessive government expenditure.
"Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE," Musk stated in his social media announcemen.
Trump responded with his own late-evening social media assault, targeting Musk's business empire and suggesting the Department of Government Efficiency should examine the tech mogul's federal funding arrangements. The president's Truth Social post directly challenged Musk's financial independence from government support.
"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!!!" Trump wrote on his platform, CNN reported.
The current dispute represents the continuation of weeks-long opposition from Musk regarding Trump's policy framework, which previously resulted in a highly publicized disagreement between the two figures earlier this month. Musk's social media activity from recent weeks had already suggested the possibility of establishing an alternative political organization.
Monday's renewed declaration from Musk specifically referenced the spending bill's impact on national debt levels. His characterization of the current political system reflected deep frustration with what he perceived as bipartisan fiscal irresponsibility.
"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," Musk posted, according to CNN.
Musk's commitment to supporting primary challengers against incumbent lawmakers represents his most substantial political intervention since departing his White House advisory position. The entrepreneur invested over $275 million supporting Trump and Republican candidates during the 2024 electoral cycle. His May interview statements indicated intentions to reduce political expenditures, claiming he had "done enough."
Federal Election Commission records show Musk's America PAC most recently contributed funds in March, supporting Republican candidates Randy Fine and Jimmy Patronis in Florida special elections, CNN reported.
Musk's policy positions have historically aligned with Trump administration priorities including border security, deportation enforcement, and illegal immigration prevention measures.
However, the domestic spending legislation appears to have created significant tension between the Tesla executive and White House leadership. Musk has consistently argued that Republican policy proposals will expand national debt obligations, describing the situation as "debt slavery."
Congressional Budget Office analysis released Sunday estimates the Senate legislation would increase the deficit by approximately $3.3 trillion over the coming decade. The Senate version carries higher costs than House-approved measures, which would add $2.4 trillion to deficit projections over ten years.
The Senate proposal includes more substantial tax reductions, fewer spending decreases, and additional revenue-generating provisions. White House officials have defended the legislation as deficit-reducing while promoting economic expansion, CNN reported.
Trump administration representatives and specific Senate Republicans have chosen not to incorporate the cost of extending 2017 tax cuts when calculating the bill's deficit impact.
While Musk has stated that opposition to the legislation does not stem from electric vehicle and solar energy subsidy eliminations, he has criticized the bill for "gives handouts to industries of the past while severely damaging industries of the future."
Trump's Truth Social response included a defense of his electric vehicle mandate position, emphasizing his campaign commitments regarding automotive regulations.
"Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. 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," Trump stated, according to CNN.
