Trump proposes to check Elon Musk's subsidies via DOGE
Date: 2025-07-02 Author: Gabriel Deangelo Categories: BUSINESS
President Donald Trump has announced the need to check the state subsidies allocated to Elon Musk's companies through the DOGE division created by Musk. This proposal was made against the backdrop of an escalation in the confrontation between the president and the billionaire.
The conflict arose due to a major budget bill called the "One Big Beautiful Bill", which provides for an increase in the US debt ceiling by $5 trillion. Musk has expressed categorical disagreement with this bill, which has become one of the reasons for the tension in relations with Trump.
In early June 2025, as a result of this confrontation, a correction in bitcoin occurred on the cryptocurrency market. Musk has publicly criticized both the bill itself and Trump's policies. In response, the US President accused Musk of receiving excessive subsidies and emphasized that without this state support, the businessman would have to curtail his projects and leave the country.
The dispute focuses on California's EV Mandate, a measure that would phase out internal combustion engine vehicles in favor of electric vehicles. The measure was supported by the Biden administration but repealed by Trump's executive order in January 2025. Trump has said that support for electric vehicles should not be forced, and that repealing the EV Mandate was part of his campaign platform.
The president also proposed instructing DOGE, a division created by Musk and headed by him until May 2025, to conduct a thorough review of the use of subsidies aimed at launching rockets, satellites, and producing electric vehicles. Musk left his post as head of DOGE in late May to focus on his own business projects.
Elon Musk himself emphasized in an interview with Tesla Owners Silicon Valley that his criticism of the budget bill has nothing to do with the repeal of the EV Mandate or subsidies for electric vehicles. He is confident that Tesla will be able to successfully compete without the benefits. However, amid the conflict, the company's shares continue to decline: after Trump's latest statement, Tesla's share price fell by another 10%, falling below $300 on the Nasdaq exchange.
It was also previously reported that Musk's other company, xAI, had raised $10 billion in investment to develop its products in the field of artificial intelligence.
Thus, the confrontation between Donald Trump and Elon Musk is taking a new turn, affecting not only politics and government subsidies, but also the cryptocurrency market and shares of large technology companies.
