Former President Donald Trump has launched a scathing attack on electric vehicle mandates and Tesla CEO Elon Musk, claiming that Musk’s business empire is entirely dependent on federal subsidies. In a recent post on Truth Social, Trump stated that ‘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.’ Trump’s criticism comes amid Tesla’s deteriorating market position and Musk’s ongoing criticism of Trump’s ‘Big Beautiful Bill,’ a nearly 1,000-page spending and tax package.
Tesla is facing significant challenges in key markets. Sales in Quebec, Canada plummeted 87% in the first quarter of 2025, with researcher Troy Teslike warning that the company may report GAAP losses starting in the first quarter of 2026. Despite near-zero sales, Tesla continues to operate 35 Canadian stores. Trump’s criticism of EV mandates reflects his campaign promise to roll back former President Joe Biden-era clean energy incentives. ‘Electric cars are fine, but not everyone should be forced to own one,’ Trump emphasized, noting that his opposition predated Musk’s presidential endorsement.
The feud between Trump and Musk has reignited tensions between the former allies following Musk’s June departure from the Trump administration. Musk, who reportedly contributed over $250 million to Trump’s 2024 campaign, has repeatedly attacked the spending bill as ‘utterly insane and destructive.’ The Congressional Budget Office estimates that the legislation would increase federal deficits by more than $3 trillion over a decade. Tesla’s stock has declined amid political controversy surrounding Musk’s government role, with his net worth dropping from $440 billion to $363 billion following Tesla’s value erosion and vandalism targeting dealerships during his government tenure.
Trump’s criticism of subsidies carries particular weight given SpaceX’s reliance on NASA contracts and Tesla’s dependence on EV tax credits. The former president’s comments highlight the complex relationship between Musk’s businesses and government support, raising questions about the long-term sustainability of Tesla and SpaceX without these financial incentives.
