The political landscape is trembling as Elon Musk, once a staunch ally of MAGA and the Trump Administration, has issued a shocking ultimatum against core Republican figures—triggering alarm in the White House. New reporting reveals that Musk is threatening to “fire” MAGA lawmakers, support primary challengers, even launch a new “America Party”—leaving senior officials scrambling and Tesla stock sliding.

Musk’s Fiery Rebuke of Trump’s “One Big Beautiful Bill”

This week, Elon Musk took to his platform X to denounce the Republican-led $3.3 trillion tax-and-spending proposal, dubbed the “One Big Beautiful Bill.” Musk called the legislation a “pork-filled abomination”, warning it would spiral the national debt and burden future generations

He didn’t just protest—Musk threatened to “fire” any Republicans who vote for it by funding serious primary challengers, and even floated formation of a third-party, the “America Party” . This marks a stark betrayal of his previous role as Trump’s informal debt-cutting czar under the Department of Government Efficiency (DOGE).

 White House in Disarray

News of Musk’s ultimatum blindsided senior White House and GOP officials. According to The Washington Post, the shockwaves of his threat have “reignited divisions within MAGA” and left Trump officials scrambling

Sources inside the administration describe the strategy rooms as “pure panic”, with aides debating how to neutralize a billionaire who can bankroll entire campaigns against them. MAGA loyalists fear Musk might deliver on his threats, risking major upsets in critical Senate and House primaries.

 Trump Speaks Up—And Threatens to Pull Subsidies

President Trump responded harshly: accusing Musk of betrayal and claiming that Musk’s businesses—chief among them Tesla and SpaceX—depend heavily on federal subsidies. He reportedly told advisers he’d “terminate Elon’s government subsidies and contracts” if the attacks continue

Trump also privately suggested the administration could launch an internal review into Musk’s federal deals—potentially risking tens of billions in revenue for Musk’s companies. According to The Jakarta Post, Trump told NBC News that Musk will “pay very serious consequences”

 Wall Street Warning Shots: Tesla Takes a Hit

Markets reacted swiftly. Tesla shares plunged around 5–9% on June 30–July 1, wiping out over $100 billion in market capitalization and further shriveling Musk’s personal fortune

Analysts warned that political volatility, alongside the removal of EV subsidies from the GOP bill, could put additional pressure on Tesla’s growth trajectory.

 MAGA Figures Threaten Backlash

Key MAGA voices are not standing aside. Steve Bannon has called for Musk’s deportation and urged Trump to “seize SpaceX” and strip Musk of government contracts, accusing him of being a “parasitic illegal immigrant”

Meanwhile, prominent grassroots MAGA influencers have joined the chorus, accusing Musk of being disconnected from American values and siding with “outsider elitists”

Some commentators labeled his rhetoric “crossing the Rubicon” for a movement that once idolized his economic libertarianism.

 The Stakes: A GOP Civil War

This explosion has thrust the Republican Party into one of its most perilous internal crises in years:

Primary threats: Musk’s checkbook could elevate credible fiscal conservative and libertarian challengers.

White House recalibration: Trump and allies are preparing contingency plans to retaliate using regulatory and political levers.

Voter confusion: With Musk’s massive online reach, millions of independent or disengaged voters may be drawn into the conflict.

As The Daily Beast notes, this marks a full-blown civil war within the GOP—between the traditional MAGA base and emerging techno-libertarian blocs

 What’s Next?

A number of scenarios are now unfolding:

Watch the primaries: Musk-supported challengers could reshuffle House and Senate dynamics.

Subsidy showdowns: Will Trump follow through on threats to yank Tesla and SpaceX contracts?

New political party? Musk’s “America Party” pitch may test broader appetite for a centrist/populist alternative.

Musk’s next moves: He may escalate by targeting MAGA leaders’ personal assets or campaign strategies.

 Final Take

Elon Musk’s move from ally to adversary marks a dramatic pivot in U.S. politics. In one sweeping statement, he’s challenged the funding, messaging, and unity of MAGA—and the White House has responded with threats to his empire in return.

This isn’t just a political spat. It’s a potential tectonic shift in how billionaire influence shapes American elections—and whether political loyalty can withstand economic leverage.