• The US Senate has handed a brand new Republican tax and spending invoice
• Passing the invoice sparked a public feud between President Trump and Elon Musk
• The battle is concentrated on lowering payments to scrub power and EV subsidies

President Donald Trump rekindled his public feud with tech billionaire Elon Musk and gave him a pointy tasks for selling inexperienced power subsidies and electrical autos nationwide.

In a put up on July 1st in X, Trump argued that masks success is fully depending on authorities help. It’s because a brand new Republican-led spending invoice threatens to chop these subsidies very a lot.

What’s on the coronary heart of the battle?

In his put up, President Trump accused Iron Musk of receiving extra subsidies than every other particular person in US historical past, claiming that these funds preserve companies like Tesla and SpaceX.

With out them, Trump insisted that “in all probability wants to shut the shop and return to South Africa.” He surrounds his opposition to the EV transition as a long-standing a part of his political platform, saying that whereas EVs are OK, the selection to personal will not be necessary. He humorously steered that “Doge,” a reference to authorities effectivity that Musk briefly suggested, might examine the problem to search out hidden financial savings.

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How did Elon Musk react?

Elon Musk supplied a restrained however pointy reply. He posted a chart monitoring impartial face emojis and US nationwide debt from 1900 to 2020. The chart peaked at over $25 trillion, displaying a pointy rise in federal debt.

Crossing the graph, Masks writes: “When will they flatten this curve?” This response appeared to query Trump’s financial reliability, somewhat than instantly addressing subsidy claims.

What’s the context of laws?

This public battle is as a result of the Senate simply authorised a brand new Republican tax and spending invoice that may have a serious influence on masks companies.

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Musk is extraordinarily vital of the invoice, warning that sure provisions might hurt the clear power business. The Senate invoice goals to remove the $7,500 EV tax credit score, a program that may assist drive Tesla’s early development. Following information of the escalating feud, Tesla shares fell greater than 5% in pre-market buying and selling in Europe as traders nervous about potential fallout.