Archive July 1, 2025

Amid their public feud over the looming tax bill, US President Donald Trump has suggested that the Department of Government Efficiency (DOGE) review subsidies tied to once ally Elon Musk, including those received by Tesla and SpaceX, in order to save money.

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED! ! ! ,” the president said in an early morning post on Trump’s social media platform Truth Social.

Trump’s remarks on Tuesday came after Musk renewed his criticism of the sweeping tax-cut and spending bill — which the White House hopes to sign into law by July 4th — pledging to unseat lawmakers who supported it after campaigning on limiting government spending.

Shortly after, Senate Republicans hauled Trump’s big tax breaks and spending cuts bill to passage Tuesday on the narrowest of margins, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session.

The outcome capped an unusually tense weekend of work at the Capitol, the president’s signature legislative priority teetering on the edge of approval or collapse. In the end, that tally was 50-50, with Vice President JD Vance casting the tie-breaking vote.

Musk and Trump spar over bill

Feuding with Trump could create hurdles for Tesla and the rest of Musk’s business empire.

The US Transportation Department regulates vehicle design and would play a key role in deciding whether Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk’s rocket company SpaceX has about $22bn in federal contracts.

Trump previously threatened to cut Musk’s government contracts when their relationship erupted into an all-out social media brawl in early June over the bill, which non-partisan analysts have said would add about $3 trillion to the US debt.

But after weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it “utterly insane and destructive” in a post on X.

On Monday, he said lawmakers who campaigned on cutting spending but backed the bill “should hang their heads in shame! ” “And they will lose their primary next year if it is the last thing I do on this Earth,” Musk added.

The criticism marked a dramatic shift after the billionaire spent nearly $300m on Trump’s re-election campaign and led the administration’s controversial DOGE initiative.

Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he achieved through DOGE.

Conflicts of interest

Musk was long slammed for his conflicts of interest while leading DOGE — accused of going after government agencies that had open investigations against him and his associated companies.

A report from the left-leaning think tank Public Citizen found that 70 percent of the agencies in May found that Musk aimed to make significant cuts to agencies, including the National Highway Traffic Safety Administration, which had been investigating Tesla.

The Food and Drug Administration, which had been investigating his brain implant chip, Neuralink, and cuts to the Department of Defense, which has been called for by both progressive Democrats as well, comes as SpaceX receives more than $22bn in federal contracts from the agency, according to the report.

The market response

There are conflicts with Musk within the bill he’s actively rallying against. The bill, which Trump eliminated the EV tax credit, Musk originally said would not hurt Tesla. The EV tax credit, however, has helped other carmakers make more affordable electric vehicles for more consumers, and Musk has recently changed his tune.

In a note last month, JP Morgan said cutting the EV tax credit could cost Tesla $1. 2bn annually. Now the market is reacting as these plans might come to fruition in a matter of days, and amid the president’s Truth Social post, spooking investors.

Tesla stock tumbled roughly 6 percent as of 11:00am ET (15:00 GMT) and about 13 percent over the last five days.

“[This] BFF situation has now turned into a soap opera that remains an overhang on Tesla’s stock with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk related US government spending related to Tesla/SpaceX and most importantly the autonomous future with the regulatory environment key to the future of Robotaxis and Cybercabs,” Dan Ives, senior analyst at Wedbush Securities said in a note provided to Al Jazeera earlier this morning.

Musk’s other companies include SpaceX, X Corp, and Neuralink are privately held companies.

The United Nations special rapporteur on the situation of human rights in the occupied Palestinian territory (oPt) has released a new report mapping the corporations aiding Israel in the displacement of Palestinians and its genocidal war on Gaza, in breach of international law.

Francesca Albanese’s latest report, which is scheduled to be presented at a news conference in Geneva on Thursday, names 48 corporate actors, including United States tech giants Microsoft, Alphabet Inc. – Google’s parent company – and Amazon. A database of more than 1000 corporate entities was also put together as part of the investigation.

“[Israel’s] forever-occupation has become the ideal testing ground for arms manufacturers and Big Tech – providing significant supply and demand, little oversight, and zero accountability – while investors and private and public institutions profit freely,” the report said.

“Companies are no longer merely implicated in occupation – they may be embedded in an economy of genocide,” it said, in a reference to Israel’s ongoing assault on the Gaza Strip. In an expert opinion last year, Albanese said there were “reasonable grounds” to believe Israel was committing genocide in the besieged Palestinian enclave.

The report stated that its findings illustrate “why Israel’s genocide continues”.

“Because it is lucrative for many,” it said.

What arms and tech companies were identified in the report?

Israel’s procurement of F-35 fighter jets is part of the world’s largest arms procurement programme, relying on at least 1,600 companies across eight nations. It is led by US-based Lockheed Martin, but F-35 components are constructed globally.

Italian manufacturer Leonardo S. p. A is listed as a main contributor in the military sector, while Japan’s FANUC Corporation provides robotic machinery for weapons production lines.

The tech sector, meanwhile, has enabled the collection, storage and governmental use of biometric data on Palestinians, “supporting Israel’s discriminatory permit regime”, the report said. Microsoft, Alphabet, and Amazon grant Israel “virtually government-wide access to their cloud and AI technologies”, enhancing its data processing and surveillance capacities.

The US tech company IBM has also been responsible for training military and intelligence personnel, as well as managing the central database of Israel’s Population, Immigration and Borders Authority (PIBA) that stores the biometric data of Palestinians, the report said.

It found US software platform Palantir Technologies expanded its support to the Israeli military since the start of the war on Gaza in October 2023. The report said there were “reasonable grounds” to believe the company provided automatic predictive policing technology used for automated decision-making in the battlefield, to process data and generate lists of targets including through artificial intelligence systems like “Lavender”, “Gospel” and “Where’s Daddy? ”

What other companies are identified in the report?

The report also lists several companies developing civilian technologies that serve as “dual-use tools” for Israel’s occupation of Palestinian territory.

These include Caterpillar, Leonardo-owned Rada Electronic Industries, South Korea’s HD Hyundai and Sweden’s Volvo Group, which provide heavy machinery for home demolitions and the development of illegal settlements in the West Bank.

Rental platforms Booking and Airbnb also aid illegal settlements by listing properties and hotel rooms in Israeli-occupied territory.

The report named the US’s Drummond Company and Switzerland’s Glencore as the primary suppliers of coal for electricity to Israel, originating primarily from Colombia.

In the agriculture sector, Chinese Bright Dairy & Food is a majority owner of Tnuva, Israel’s largest food conglomerate, which benefits from land seized from Palestinians in Israel’s illegal outposts. Netafim, a company providing drip irrigation technology that is 80-percent owned by Mexico’s Orbia Advance Corporation, provides infrastructure to exploit water resources in the occupied West Bank.

Treasury bonds have also played a critical role in funding the ongoing war on Gaza, according to the report, with some of the world’s largest banks, including France’s BNP Paribas and the UK’s Barclays, listed as having stepped in to allow Israel to contain the interest rate premium despite a credit downgrade.

Who are the main investors behind these companies?

The report identified US multinational investment companies BlackRock and Vanguard as the main investors behind several listed companies.

BlackRock, the world’s largest asset manager, is listed as the second largest institutional investor in Palantir (8. 6 percent), Microsoft (7. 8 percent), Amazon (6. 6 percent), Alphabet (6. 6 percent) and IBM (8. 6 per cent), and the third largest in Lockheed Martin (7. 2 percent) and Caterpillar (7. 5 percent).

Vanguard, the world’s second-largest asset manager, is the largest institutional investor in Caterpillar (9. 8 percent), Chevron (8. 9 percent) and Palantir (9. 1 percent), and the second largest in Lockheed Martin (9. 2 percent) and Israeli weapons manufacturer Elbit Systems (2 percent).

Are companies profiting from dealing with Israel?

The report states that “colonial endeavours and their associated genocides have historically been driven and enabled by the corporate sector. ” Israel’s expansion on Palestinian land is one example of “colonial racial capitalism”, where corporate entities profit from an illegal occupation.

Since Israel launched its war on Gaza in October 2023, “entities that previously enabled and profited from Palestinian elimination and erasure within the economy of occupation, instead of disengaging are now involved in the economy of genocide,” the report said.

For foreign arms companies, the war has been a lucrative venture. Israel’s military spending from 2023 to 2024 surged 65 percent, amounting to $46. 5bn – one of the highest per capita worldwide.

Several entities listed on the exchange market – particularly in the arms, tech and infrastructure sectors – have seen their profits rise since October 2023. The Tel Aviv Stock Exchange also rose an unprecedented 179 percent, adding $157. 9bn in market value.

Global insurance companies, including Allianz and AXA, invested large sums in shares and bonds linked to Israel’s occupation, the report said, partly as capital reserves but primarily to generate returns.

Booking and Airbnb also continue to profit from rentals in Israeli-occupied land. Airbnb briefly delisted properties on illegal settlements in 2018 but later reverted to donating profits from such listings to humanitarian causes, a practice the report referred to as “humanitarian-washing”.

Are private companies liable under international law?

According to Albanese’s report, yes. Corporate entities are under an obligation to avoid violating human rights through direct action or in their business partnerships.

States have the primary responsibility to ensure that corporate entities respect human rights and must prevent, investigate and punish abuses by private actors. However, corporations must respect human rights even if the state where they operate does not.

A company must therefore assess whether activities or relationships throughout its supply chain risk causing human rights violations or contributing to them, according to the report.

The failure to act in line with international law may result in criminal liability. Individual executives can be held criminally liable, including before international courts.

The report called on companies to divest from all activities linked to Israel’s occupation of Palestinian territory, which is illegal under international law.

In July 2024, the International Court of Justice issued an advisory opinion ruling that Israel’s continued presence in the occupied West Bank and East Jerusalem should come to an end “as rapidly as possible”. In light of this advisory opinion, the UN General Assembly demanded that Israel bring to an end its unlawful presence in the occupied Palestinian territory by September 2025.

Albanese’s report said the ICJ’s ruling “effectively qualifies the occupation as an act of aggression … Consequently, any dealings that support or sustain the occupation and its associated apparatus may amount to complicity in an international crime under the Rome Statute.