Trump Slams Elon Musk Over Subsidies as Musk Calls for New Political Party Amid $5 Trillion Spending Outcry

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WASHINGTON – Former U.S. President Donald Trump has taken a public swipe at billionaire entrepreneur Elon Musk, accusing the Tesla and SpaceX founder of relying heavily on government subsidies while decrying the Biden administration’s electric vehicle (EV) mandates. In a sharply worded post on Truth Social, Trump warned that without government support, Musk “might have to shut down and head back to South Africa.”

The comments came as part of a broader attack on federal green energy policies, with Trump calling the EV mandate “ridiculous” and asserting that “people shouldn’t be forced to buy them.”

“Elon might get more government subsidies than anyone in history,” Trump wrote. “No more rockets, satellites, or EVs [without them]. Maybe DOGE should look into this. Big money to be saved.”

Trump’s remarks follow growing conservative frustration over large-scale government spending and rising national debt. But they also drew immediate attention for targeting Musk, a recent Trump endorser and one of the most influential voices in both technology and politics.

Musk Strikes Back: “America Needs a Third Party”

Musk, never one to stay silent for long, responded with a seismic post on X (formerly Twitter), declaring:

“If this insane spending bill passes, the America Party will be formed the next day.

Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”

Musk was referring to a controversial bill moving through Congress that raises the U.S. debt ceiling by an eye-popping $5 trillion while adding $270 billion to the deficit in the next fiscal year. The legislation has ignited a political firestorm, drawing condemnation from both sides of the aisle, including libertarian-leaning Senator Rand Paul, who labelled it “an admission that both parties have given up on fiscal responsibility.”

Musk echoed the sentiment in his post, declaring the bill “the $5 trillion proof that America needs a third party.”

“A Liberation Movement”

Supporters of Musk’s growing political rhetoric argue that a new political force—dubbed the America Party—isn’t just necessary, but long overdue.

“The cycle is predictable and soul-crushing,” Musk added in a follow-up post. “Republicans campaign on smaller government, Democrats on helping working families. Both get elected, both feed the same machine. The debt explodes, the establishment wins, Americans lose.”

The entrepreneur’s words have struck a chord in a politically fatigued electorate. Polling in recent months shows that 60–70% of Americans support the creation of a viable third party, frustrated with what many see as an unresponsive political establishment beholden to corporate donors.

“This isn’t about attacking conservatives who voted for this bill,” Musk wrote. “It’s about recognizing a system that forces good people into bad choices. When the only options are Big Government Party A and Big Government Party B, the deep state wins by default.”

He called the America Party a “liberation movement” aimed at dismantling the entrenched influence of special interests in Washington.

Subsidies vs. Sovereignty?

Trump’s criticism of Musk was widely interpreted as a dig at the billionaire’s increasing political presence—and perhaps as a warning shot. While Musk’s companies have undeniably received billions in federal subsidies and contracts, he has frequently argued that those investments have delivered technological breakthroughs and national security assets.

Observers also point out that Trump himself supported subsidies for fossil fuels and corporate tax breaks during his tenure. Nevertheless, his latest message was clear: government handouts and political independence don’t mix.

A Collision Course in 2028?

As the 2028 U.S. presidential race looms, the Trump-Musk exchange hints at a potentially explosive power struggle between populist conservatism and technocratic disruption. Whether Musk follows through on forming a third party—or whether his movement can translate online support into electoral success—remains to be seen.

But one thing is increasingly certain: the old party lines are blurring. And in a deeply polarised, debt-ridden America, voices like Musk’s may find a surprisingly broad audience.