The Tesla and SpaceX CEO’s public rift with Trump over federal subsidies and court powers marks a dramatic shift in their previously cordial relationship.
BY PC Bureau
July 1, 2025 — Tech billionaire Elon Musk has ignited a firestorm of controversy with a pointed critique of President Donald Trump’s proposed spending bill, warning that it could pave the way for unchecked presidential power. In a tweet posted on Tuesday, Musk highlighted a provision in the bill that would defund the enforcement of federal contempt of court orders, describing it as the “actual crux” of the legislation.
While the measure is presented as targeting illegal immigration, Musk cautioned that it “obviously also enables many other abuses of power by the President.”
The tweet, posted from Musk’s X account ( @elonmusk ), comes amid escalating tensions between the Tesla and SpaceX CEO and President Trump, who recently threatened to slash federal subsidies to Musk’s companies and even hinted at deporting the South African-born U.S. citizen.
Removal of funding for enforcement of federal contempt of court orders is the actual crux of this spending bill.
This is nominally aimed at removal of illegal immigrants, but obviously also enables many other abuses of power by the President.
Should this be allowed?
— Elon Musk (@elonmusk) July 1, 2025
Trump’s remarks, made via Truth Social and in comments to reporters, suggested that Musk’s businesses—reliant on billions in government contracts and subsidies—could face severe scrutiny from the Department of Government Efficiency (DOGE), an agency Musk briefly led before stepping down in May.
READ: Trump vs. Musk: Can the President Really Deport Elon?
Trump also suggested that the Department of Government Efficiency (DOGE)—a short-lived agency Musk once headed before resigning—might investigate Musk’s subsidy history. Speaking to reporters, Trump said, “We might have to put DOGE on Elon,” and, when asked about the possibility of deporting Musk, added, “I don’t know. We’ll have to take a look.”
Musk, a naturalized U.S. citizen originally from South Africa, responded to Trump’s threat, saying, “I am literally saying CUT IT ALL. Now.”
Concerns Over Judicial Independence
Must has been critical of Trump’s favourite bill’s provision , involving contempt of court enforcement, which has also drawn concern from legal scholars, who warn it could erode the balance of power between the executive and judicial branches. Critics argue that defunding this enforcement mechanism would make it difficult to compel compliance with court orders, weakening the rule of law.
Musk echoed these concerns, calling for broad fiscal restraint and denouncing any policies that centralize too much power in the executive.
Political Implications for Musk and Trump
The fallout from this policy dispute could have major implications for both Musk’s business empire and Trump’s political agenda. Tesla and SpaceX depend on several government contracts, and any review or rollback of federal support could affect operations. Tesla’s stock slipped 4% in early trading Tuesday following reports of Trump’s comments.
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Musk has previously indicated disillusionment with both parties, supporting some Republican candidates while also criticizing the GOP’s fiscal policy. He has also floated the idea of supporting third-party candidates, though he has not formally launched or endorsed a new political movement.
The clash between Musk and Trump—once seen as allies—has now become a high-profile confrontation at the intersection of politics, policy, and personality.
