President Donald Trump has issued a stern warning to Elon Musk, the billionaire founder of Tesla and SpaceX, threatening to revoke his government subsidies. Trump suggested that without these subsidies, Musk might have to shut down his businesses and return to South Africa.

This statement comes after Musk proposed forming a new political party to challenge the dominance of the Republican and Democratic parties.

Elon Musk recently hinted at forming a new political party in the United States. The tech mogul expressed frustration with the existing political system, criticizing lawmakers for supporting Trump’s contentious spending bill. Musk called out members of Congress, accusing them of hypocrisy for campaigning against government debt and then supporting its increase.

As the Senate debated Trump’s “Big, Beautiful Bill,” Musk took to his social media platform, X, to warn lawmakers. He pledged to ensure that those who supported the bill would lose their seats in upcoming primaries. Musk even stated that he would launch the “America Party” immediately if the bill passed, aiming to give citizens an alternative to the two major parties.

In a post on Truth Social, Trump reminded Musk that he has always been against electric vehicle (EV) mandates. The president argued that while electric cars are acceptable, forcing people to adopt them is unnecessary.

Trump further claimed that Musk owes much of his success to government subsidies. He hinted that without this financial support, Musk’s ventures like Tesla and SpaceX would not survive.

Doubling down, Trump suggested investigating Musk’s government subsidies, referring to the potential involvement of “DOGE” to uncover financial details. The president implied that eliminating these subsidies could save the country significant money.

The bill at the center of the controversy has been widely criticized. Democratic lawmakers argue that it favors the wealthy with tax cuts, reduces healthcare access for over a million low-income Americans, and cuts critical programs like school feeding for children from impoverished backgrounds.

The tension between Trump and Musk highlights growing divisions within U.S. politics and the tech world. Musk’s bold move to form a new party could reshape the political landscape, but it also puts him in direct conflict with Trump’s administration.