US President Donald Trump has escalated his dispute with Tesla and SpaceX CEO Elon Musk, suggesting he would consider reviewing Musk’s citizenship status amid growing disagreement over federal electric vehicle (EV) policy and government spending.
The comments, made at the White House on Tuesday, come amid Musk’s increasing criticism of a GOP-backed tax-and-spending bill, which seeks to end EV consumer tax credits—a move that could significantly affect Tesla’s business model.
Trump Suggests Deportation
When asked directly by a reporter if he would consider deporting Elon Musk, who was born in South Africa and became a U.S. citizen in 2002, President Trump responded:
“I don’t know. We’ll have to take a look,” Trump said while speaking at the White House as reported by Bloomberg.
The remark follows earlier statements Trump made online and in person, referencing the role of federal subsidies in Musk’s success.
“If we pulled all those subsidies tomorrow, Tesla and SpaceX would have to close up shop and head back home to South Africa.”
“He’s losing his EV mandate,” Trump said. “Elon could lose a lot more than that.”
The “EV mandate” refers to federal fuel economy and emissions rules that support electric vehicle production. While the bill does not repeal those standards, it proposes an early termination of consumer EV tax credits, a program that has incentivized purchases of Tesla and other EVs across the country.
DOGE Reference Reappears
During the same exchange with reporters, Trump made a reference to the now-defunct Department of Government Efficiency (DOGE), which Musk briefly led before resigning in May 2025.
“We might have to put DOGE on Elon. DOGE is the monster that might have to go back and eat Elon. Wouldn’t that be terrible?”
DOGE was an agency formed during Trump’s second term to audit and streamline federal spending. Musk’s short-lived leadership of the agency ended after disputes over the administration’s fiscal direction.
Musk’s Response
Musk responded on social media platform X with renewed criticism of the bill, denying that his objections were motivated by concern over subsidies or mandates.
“I am literally saying CUT IT ALL. Now.”
“Trump’s ‘Big Beautiful Bill’ is $5.4 trillion of pork-barrel waste. It’s debt slavery to future generations.”
“So tempting to escalate this. So, so tempting. But I will refrain for now.”
Musk has also described the bill as an “ins8ne spending bill” and has floated the idea of supporting or forming a third political party. He argues that his opposition stems from wider issues related to debt and fiscal policy—not Tesla’s profits.
Stock Market Reaction
Tesla shares dropped by more than 4% in premarket trading after Trump’s remarks became public. Analysts attributed the dip to uncertainty surrounding both federal EV policy and the tone of the administration’s comments about Musk and Tesla.
“Markets are reacting to policy threats and headline risk,” said Dana Marks, an analyst at MNB Capital. “If EV credits are rescinded and contract awards come under scrutiny, that could significantly impact revenue projections for Tesla and even SpaceX.”
Legal Standing
Trump’s suggestion of reviewing Musk’s citizenship has raised questions about the legality of such action. Musk became a naturalized U.S. citizen in 2002 after immigrating from South Africa.
Legal experts widely agree that revoking the citizenship of a naturalised American is extremely rare and legally complex.
“Once you’re naturalised, the government can’t revoke your citizenship without extreme and rare circumstances—like terrorism or fraud,” said Nia Alvarez, constitutional attorney at the Brookings Institute.
As of July 1, there is no formal process underway to challenge Musk’s citizenship.
From Allies to Adversaries
Trump and Musk previously maintained a working relationship. Musk was seen as a key business ally during Trump’s 2024 re-election campaign and was invited to join key advisory roles in Trump’s second administration.
However, tensions have increased over the past few months, particularly after Musk resigned from DOGE and began publicly criticising Republican tax policies. Their exchanges have increasingly played out over social media and public interviews, often involving pointed rhetoric and sarcastic personal remarks.
While the conflict had appeared to cool in early June, Musk’s renewed criticism of the tax bill reignited the feud, prompting Trump’s latest round of remarks.
The disagreement between President Trump and Elon Musk reflects deeper tensions over the direction of fiscal policy, EV incentives, and the evolving relationship between government and high-tech industry leaders. While there are currently no policy actions targeting Musk’s companies or citizenship, the tone of the exchange has introduced new political risk into Tesla’s business environment.
The long-term implications may extend beyond this individual dispute, affecting broader debates around green energy policy, federal subsidies, and the limits of presidential authority.
