Shares in Tesla Inc (NASDAQ:TSLA) were down 4.8% in pre-market trading on Tuesday after the seeming feud between boss Elon Musk and US President Donald Trump was reignited.
Trump issued a post calling for the White House's so-called 'Department of Government Efficiency' (DOGE) to investigate the subsidies paid to Tesla.
The President criticized the electric vehicle mandate, saying it is "ridiculous" and claiming that Musk gets "more subsidy than any human being in history", without which he "would probably have to close up shop and head back home to South Africa".
"Perhaps we should have DOGT take a good, hard, look at this".
Earlier, Musk said he will form a new political party if Trump's tax-cuts and spending bill, known as the One Big Beautiful Bill, is passed by Congress, warning of the consequences of the resulting increase in national debt.
Independent forecasts have estimated the bill will add at least $1.2 trillion to the federal deficit over the next decade, pushing the US debt-to-GDP ratio above 130%.
Musk tweeted: "If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE."
If this insane spending bill passes, the America Party will be formed the next day.
Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.
— Elon Musk (@elonmusk) June 30, 2025