Investigation of DOGE initiated by Trump concerning Musk's subsidies
In a significant turn of events, the Department of Government Efficiency (DOGE) is currently conducting a comprehensive assessment of the federal subsidies received by Elon Musk's companies, primarily Tesla and SpaceX, following a directive from President Donald Trump on July 1, 2025.
This review, which is part of a broader scrutiny, has the potential to significantly impact the financial landscape of these companies. Both SpaceX and Tesla have traditionally relied heavily on federal grants, contracts, and subsidies to fund their ambitious projects. For instance, SpaceX has received $22 billion in federal contracts, while Tesla has invested significantly in electric vehicles and emerging technologies like robotaxis.
The implications of this review extend beyond just financial aspects. Operational risks could arise if these subsidies are reduced or eliminated. For Tesla, which is betting on the success of driverless robotaxi technology regulated by the U.S. Transportation Department, such a scenario could hamper its ability to scale operations or fund future initiatives.
The market reaction to the announcement has already been noticeable. Tesla’s stock has demonstrated increased volatility and a notable price decline, reflecting investor concerns about the companies’ reliance on government support.
The review has also sparked a public feud between Trump and Musk. Trump has stated that Musk may receive more subsidies "than any human being in history" and that without these subsidies, Musk's enterprises might fail or force him to leave the U.S. Musk, on the other hand, has expressed a desire for subsidy elimination altogether.
While no official outcomes or policy changes have yet been reported, the review marks a critical moment that could reshape the federal support framework for Musk’s ventures. It underscores the complex intersection of government funding, corporate dependency, and political rivalry affecting SpaceX and Tesla’s future operations and financing.
Meanwhile, other developments in the tech and crypto world are also making headlines. For instance, REX Shares has filed for a leveraged TRON ETF with the US SEC, while Kraken has expanded tokenized stocks on the BNB Chain. Additionally, Vitalik Buterin supports Storm and advocates for privacy tools, and British crypto platform Ziglu has entered special management.
Sources: [1] CNBC. (2025). Trump orders DOGE to review Elon Musk's subsidies. [online] Available at: https://www.cnbc.com/2025/07/01/trump-orders-doje-to-review-elon-musks-subsidies.html [2] Reuters. (2025). Trump directs DOGE to review Elon Musk's federal subsidies. [online] Available at: https://www.reuters.com/business/trump-directs-doje-review-elon-musks-federal-subsidies-2025-07-01/ [3] Bloomberg. (2025). Trump's DOGE review could impact SpaceX and Tesla's operations and funding. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-02/trump-s-doje-review-could-impact-spacex-and-tesla-s-operations-and-funding
- The assessment by the Department of Government Efficiency (DOGE) on Elon Musk's companies' federal subsidies is stirring a controversy in the world of entrepreneurship and finance.
- The potential impact of this review on SpaceX and Tesla's financial landscape has made ongoing cryptocurrency investing and business decisions related to real-estate and technology more complex.
- The review of federal subsidies to Musk's ventures, as part of the broader scrutiny, could lead to changes in crypto regulations, affecting the worldwide cryptocurrency market.
- Social-media platforms are flooded with debates between supporters of Musk and Trump, reflecting the political implications of the review on policy-and-legislation and the overall general-news landscape.
- Entities like REX Shares and Kraken are expanding their crypto and tech offerings, demonstrating resilience in the face of political uncertainties surrounding Musk’s companies.
- Crypto influencers, such as Vitalik Buterin, have added their voices to the debate, advocating for privacy tools, potentially shaping the future of crypto-mining and cryptocurrency investments.
- Amidst these developments, British crypto platform Ziglu finding itself under special management serves as a stark reminder of the operational risks posed by political, technology, and financial uncertainties in the crypto and business world.
