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Home»Science/Tech & Innovation/R&D»Trump threatens Musk over EVs subsidies, says he might “head back to South Africa”
Science/Tech & Innovation/R&D

Trump threatens Musk over EVs subsidies, says he might “head back to South Africa”

Abdallah el-KurebeBy Abdallah el-KurebeJuly 1, 2025Updated:July 1, 2025No Comments2 Mins Read
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U.S. President Donald Trump has reignited his feud with tech billionaire Elon Musk, this time threatening that Musk would “head back to South Africa” if the federal government slashes subsidies for electric vehicles (EVs).

Trump’s latest remarks come amid heightened political tensions over the “Big Beautiful Bill,” a sweeping tax and spending package that includes significant cuts to clean energy incentives. The bill, championed by conservative lawmakers, aims to reshape America’s climate and economic landscape by rolling back support for industries such as EVs manufacturing—a move that would directly affect Musk’s Tesla empire.

Musk, a vocal opponent of the bill, has not held back his criticism. He recently described the legislation as “political suicide for the Republican Party,” warning that the party risks alienating younger voters and tech-forward entrepreneurs. His criticism appears to have struck a nerve with Trump, who fired back at a campaign rally in Texas on Monday.

“Elon’s had a nice run with our money,” Trump said. “But if we take away those subsidies, he might just pack up and head back to South Africa. Maybe that’s not such a bad idea.”

Adding to the controversy, Trump also floated the idea of launching a federal investigation into the subsidies Musk’s companies—Tesla and SpaceX—have received over the years. He said the inquiry would be handled by the Department of Government Efficiency (DOGE), a once-obscure agency that Musk led briefly before resigning in May amid political pressure.

Critics have dismissed Trump’s comments as inflammatory and retaliatory, while others see them as a calculated attempt to control the clean energy narrative ahead of the 2026 midterms.

Meanwhile, Musk is not backing down. Sources close to the billionaire suggest he is considering launching a new political movement—the so-called “America Party.” According to insiders, the official announcement could come the day after the Big Beautiful Bill is signed into law.

The growing rift between Trump and Musk highlights deeper divisions within the Republican Party over the future of clean technology, climate policy, and the role of government in innovation.

For now, all eyes are on Capitol Hill as the Senate debates the fate of the bill—and on Musk, whose next move could reshape both politics and business in the U.S.

Credit: DW (Deutsche Welle)

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