US President Donald Trump has threatened to end billions of dollars in subsidies to Elon Musk's companies, Tesla and SpaceX.
According to a Reuters report, the threat was made as Trump promoted a tax cut and spending reduction bill that passed the Senate on Tuesday.
The bill eliminates incentives for electric vehicle (EV) purchases, including a $7,500 tax credit that has benefited Tesla.
Despite Musk's support for the subsidy cuts, Tesla has received $22 billion in government contracts and subsidies through SpaceX.
The dispute flared up again when Musk criticized the law and threatened to form a new party to oppose politicians who supported it.
Furthermore, Trump also mocked the agency that Musk once led - the US Department of Government Efficiency (DOGE) - by saying that it should "go back and swallow Elon."
The situation has made the relationship between Trump and Musk increasingly tense after the two waged psychological warfare on each other.
Tesla shares fell 5.5% on weaker global sales performance and investor concerns over its robotaxis program, which is still awaiting regulatory approval before it can be rolled out.
