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Trump warns Musk may ‘head back to South Africa’ as Tesla subsidies face threat

Simon Osuji by Simon Osuji
July 1, 2025
in Business
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Trump warns Musk may ‘head back to South Africa’ as Tesla subsidies face threat
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The post comes amid growing criticism of federal spending on clean energy and electric vehicles, with Trump repeatedly framing such investments as wasteful and unfairly benefiting select corporations.

“Elon may get more subsidies 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, in what is being interpreted as both a personal jab and a political signal.

Musk had until May spearheaded the Department Of Government Efficiency (DOGE) which focused on slashing fraud and waste in the country’s government spending.

Trump further hinted that the DOGE initiative which Elon Musk helped establish, could be used to scrutinize the billionaire himself.

“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?” the president wrote.

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Musk’s fallout with Trump

Musk and his companies have reportedly received at least $38 billion in government contracts, loans, subsidies, and tax credits over the years

Elon Musk’s brief role in President Donald Trump’s administration has been overshadowed by political fallout and mounting legal challenges.

Appointed in early 2025 to help lead the Department of Government Efficiency (DOGE), Musk oversaw aggressive reforms, including the dismantling of USAID, defunding of diversity programs, and dismissal of over 200,000 federal workers.

The sweeping changes sparked immediate lawsuits and internal resignations, with critics accusing DOGE of constitutional overreach. Musk later stepped down and officially announced the end of his term, though escalating controversy suggested a calculated exit.

Tensions escalated further when Musk publicly criticized Trump’s “Big, Beautiful Bill,” a sweeping spending proposal now facing resistance even within Republican ranks.

Musk called the bill fiscally irresponsible, prompting a sharp response from Trump on Truth Social. The president accused Musk of being overly reliant on taxpayer money, writing that the tech magnate “may get more subsidies than any human being in history.”

Although Musk has often portrayed himself as self-made and ideologically independent, Tesla has received billions in federal and state subsidies over the years—including tax credits, regulatory incentives, and government contracts.

According to The Washington Post, Musk and his companies have received at least $38 billion in government contracts, loans, subsidies, and tax credits over the years, a figure Trump now appears ready to weaponize as their once-collaborative relationship unravels.

For Musk, who was born in South Africa and became a U.S. citizen in 2002, the reference to his birthplace adds a pointed edge to the president’s remarks, framing the debate not just as a policy dispute but as a test of national loyalty and industrial resilience.

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