WASHINGTON: US President Donald Trump said Tuesday he could consider deporting Elon Musk, after the South African-born billionaire slammed his flagship spending bill.
Trump also said the Department of Government Efficiency (DOGE) -- which Musk headed before stepping down late May -- may train its sights on the Tesla and SpaceX founder's government subsidies.
"I don't know. We'll have to take a look," Trump told reporters at the White House when asked if he would consider deporting Musk.
"We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon."
Trump doubled down on the threat when he said he believed Musk was attacking his so-called "One Big Beautiful Bill" because he was annoyed that it had dropped measures to support electric vehicles (EV).
"He's losing his EV mandate. He's very upset about things, but you know, he could lose a lot more than that, I can tell you right now. Elon can lose a lot more than that."
Trump made similar comments on his Truth Social network late Monday, saying that "without subsidies, Elon would probably have to close up shop and head back home to South Africa."
Musk, the world's richest person, was Trump's biggest donor in the 2024 election and initially maintained a near constant presence at the newly elected president's side.
They had an acrimonious public falling out this month over the bill and the tycoon has reprised his criticisms in recent days, accusing Republicans of abandoning efforts to place the United States at the front of the EV and clean energy revolution.
Musk has also renewed his calls for the formation of a new political party called the "America Party" if the bill passed.
Tesla shares take a hit
Shares of Elon Musk's electric vehicle maker Tesla slumped Tuesday as the war of words between the billionaire and Trump heated up.
Shares of Tesla have already tumbled more than 20% this year as worldwide sales of the company’s vehicles erode amid a backlash against Musk and his association with the Trump administration, as well as stiffer competition. Tesla sales are plummeting in Europe and China as well. Tesla sales in China dropped 15% in May from a year earlier, according to the China Passenger Car Association, more than twice the decline from just the previous month.
Tesla's stock fell more than 5% in morning trading.
The resumption of hostilities between Trump and Musk, also the CEO of SpaceX, is always bad news for investors in Musk's companies.
“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 related to Tesla/SpaceX and most importantly the autonomous future with the regulatory environment key to the future of Robotaxis and Cybercabs,” wrote Wedbush Securities analyst Dan Ives on Tuesday.
“We would expect the stock to be weak to kick off trading this morning as the Street will show concern that the Trump and Musk once BFF relationship now backfires and turns into a junior high school friendship gone bad into an enemy.”
(With inputs from AP, AFP)