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Musk Declares "New Party Launch" in Response to Trump’s Tax Cut Bill... Clash Reignites

Confrontation on Social Media... Trump Pressures for Bill Passage
Musk: "Pig Party, One-Party State"

After President Donald Trump suggested that subsidies for companies owned by Elon Musk, such as Tesla, could be discontinued, Elon Musk, CEO of Tesla, declared, "If the bill passes, I will launch a new political party the very next day." This signals a renewed escalation of conflict between Trump and Musk.


According to Yonhap News on July 1, President Trump posted on Truth Social earlier that day, proposing that reducing government subsidies received by companies run by Musk would help cut the federal budget. President Trump stated, "Musk knew long before he supported me as a presidential candidate that I have always been strongly opposed to mandatory electric vehicles."


Musk Declares "New Party Launch" in Response to Trump’s Tax Cut Bill... Clash Reignites On May 30, Elon Musk, CEO of Tesla (left), and Donald Trump, President of the United States, hold a press conference in the White House Oval Office. Photo by Reuters

He continued, "Elon may have received more subsidies than any person in history. Without those subsidies, Elon would probably have to close shop and return to South Africa." President Trump added, "If we stop rocket launches, satellites, and electric vehicle production, our country could save a tremendous amount of money," and pressured, "It may be a good idea for the Department of Government Efficiency (DOGE) to seriously review this issue."


DOGE is an agency newly established by President Trump to pursue federal government reform and spending cuts. Musk was a co-head of the agency, but stepped down from the position about a month ago.


President Trump's latest remarks came as Musk has been publicly criticizing the tax cut bill, which has entered the Senate voting process, on a daily basis. When Trump and Musk engaged in a public war of words over the tax cut bill early last month, Trump also stated, "The easiest way to save the budget is to cut off Elon's government subsidies and contracts," hinting at the possibility of terminating federal contracts with Musk's space company SpaceX and others.


The previous day, Musk harshly criticized the Republican Party on X (formerly Twitter), saying, "Given the insane spending in this bill that raises the debt ceiling by $5 trillion, it is clear we are living in a one-party state of the Pig Party." Earlier, Musk had posted on X in early June, "Isn't it time to create a party that represents the centrist 80%?" and even mentioned the name 'The American Party.' However, this is the first time he has specified a concrete timeline for launching a new party.


Musk Declares "New Party Launch" in Response to Trump’s Tax Cut Bill... Clash Reignites Elon Musk, CEO of Tesla. Photo by Reuters Yonhap News

On this day, Musk did not hesitate to use strong language, stating, "Lawmakers who support the largest increase in the fiscal deficit in history should hang themselves." Musk has consistently opposed the tax cut bill, arguing that it could undermine the achievements he made at the Department of Government Efficiency (DOGE).


The U.S. Senate began the so-called "One Big Beautiful Bill," President Trump's tax cut bill, with a "vote-a-rama" procedure earlier that morning. The bill includes provisions to end tax credits for Tesla's electric vehicle, solar, and wind businesses. The Congressional Budget Office (CBO) has estimated that the bill would add about $3 trillion to the federal deficit.


The vote-a-rama is a process in which senators can submit unlimited amendments and hold votes on them before the main bill is voted on. If the bill passes the Senate, it returns to the House of Representatives for further deliberation. President Trump is pressuring lawmakers to pass the bill by July 4, U.S. Independence Day.


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