"The Department of Government Efficiency May Be a Monster That Devours Musk"
On July 1 (local time), U.S. President Donald Trump warned Tesla CEO Elon Musk, who had once again publicly expressed opposition to a bill encompassing the president’s policy agenda, that “he could lose a lot.”
Before leaving the White House in Washington, D.C. on this day to inspect a detention facility for undocumented immigrants in Florida, President Trump was asked about CEO Musk’s opposition to the bill. He responded, “He is angry. He says he will lose the electric vehicle mandate,” and then warned, “He could lose much more than that.”
CEO Musk had raised the possibility of forming a new political party the previous day in response to President Trump’s so-called “one big, beautiful bill,” which includes the repeal of green subsidies and large-scale tax cuts as part of his policy agenda. Musk said, “If this insane spending bill passes, the ‘America Party’ will be formed the very next day.”
In response, President Trump posted on the social media platform Truth Social early in the morning, suggesting that federal budget savings should be achieved by reducing government subsidies received by companies operated by CEO Musk. President Trump’s remark that “Musk could lose much more” is interpreted as a reference to the possibility of terminating government contracts with Musk’s companies and cutting subsidies to those companies.
President Trump was also asked whether CEO Musk, who is originally from South Africa and now holds U.S. citizenship, might be deported to South Africa. He replied, “I don’t know,” but added, “We will have to look into it.”
President Trump further stated, “We might have to let the Department of Government Efficiency (DOGE) handle Musk,” and added, “The Department of Government Efficiency may be a monster that has to devour Musk.” As a result, the relationship between President Trump and CEO Musk, which seemed to have been mended after their conflict last month, is once again heading toward a breakdown over the handling of the policy agenda bill.
During last year’s presidential election, CEO Musk provided both material and moral support to President Trump and was regarded as a key contributor to Trump’s victory. After the launch of the second Trump administration, Musk led the Department of Government Efficiency and was at one point called Trump’s “emerging closest ally.”
Meanwhile, as the conflict between CEO Musk and President Trump intensified, Tesla’s stock price closed at $300.71 on the New York Stock Exchange, down 5.34% from the previous day. This marks six consecutive trading days of decline since June 23.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
