'So tempting to escalate': Musk fires back as Trump hints at deportation

US President Donald Trump threatens to review Elon Musk's citizenship and EV subsidies as tensions over a Republican tax bill mount; Musk hints at retaliation but says he'll hold off - for now

The escalating war of words between US President Donald Trump and tech billionaire Elon Musk intensified on Tuesday. Trump said he would “take a look” at the possibility of deporting Musk, who has been a US citizen since 2002. When asked by journalists whether he would consider such a move, Trump replied, “We’ll have to take a look.” 

Trump, 79, also suggested that the federal government could target the substantial contracts and subsidies awarded to Musk’s companies, including SpaceX and Starlink. “Elon may get more subsidies than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote earlier on Truth Social. 

The comments came as Trump was en route to a migrant detention centre in Florida nicknamed ‘Alligator Alcatraz’. He said, “We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon.”

Trump said, “I don’t think he should be playing that game with me.”

 

Tempting to escalate, hints Musk

Musk responded to Trump’s video on X, saying, “So tempting to escalate this. So, so tempting. But I will refrain for now.”    The world’s richest person, who was once a major political donor to Trump during the 2024 campaign, has increasingly distanced himself from the President. Musk had previously served as the head of Trump’s short-lived Department of Government Efficiency (DOGE), but stepped down in May. Since then, he has openly criticised Republican lawmakers and threatened to back a rival political movement if Trump’s allies continue to support his flagship economic proposal. 

   

 

Financial impact and political fallout

Shares of Tesla tumbled on Tuesday as tensions reignited between Musk and Trump over a sweeping Republican tax and spending bill. The electric vehicle maker’s stock dropped nearly 6 per cent in early trading, adding to broader concerns about Musk’s growing political friction and its impact on his companies, Associated Press reported. 

Tesla stock has already declined more than 20 per cent this year, with demand weakening in key markets such as Europe and China. Analysts attribute some of that erosion to public backlash surrounding Musk’s political associations and his role in shaping — or clashing with — Trump-era policy, Associated Press reported. 

The latest drop followed Musk’s suggestion that he may launch a new political party, intensifying the feud that has taken centre stage in recent days.   

 

Musk clash with Republican agenda

At the heart of the divide is the contentious ‘One Big Beautiful Bill’ — a Republican-backed legislative package combining deep tax cuts with significant reductions in federal spending. Over the weekend, Musk intensified his opposition, claiming it would harm job creation and hinder the clean energy transition. 

On Saturday, Musk wrote on X that passing the bill would amount to “political suicide” for the Republican Party. As the Senate entered a tense overnight session into Tuesday, Musk went further — vowing to campaign against lawmakers who support the legislation. 

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame,” he posted. “And they will lose their primary next year if it’s the last thing I do on this Earth.”