Former White House strategist Steve Bannon escalated his criticism of tech billionaire Elon Musk on Thursday, June 5, urging President Donald Trump to investigate Musk’s immigration status and deport him immediately while also calling for the federal seizure of his SpaceX company.
Bannon made the inflammatory comments during his “War Room” podcast and in a subsequent interview with The New York Times, responding to the public feud between Trump and Musk over the president’s legislative agenda. The former Trump advisor expressed his strong belief that Musk is an illegal alien and should face immediate deportation from the country.
The heated exchange came after Musk threatened to decommission SpaceX’s Dragon spacecraft program, which NASA relies on to transport astronauts and supplies to the International Space Station. Bannon responded by urging Trump to invoke the Defense Production Act to seize control of the rocket company before midnight that same day.
The Defense Production Act, a Korean War-era provision, grants presidents authority to require private companies to accept and prioritize government contracts for national defense manufacturing. Trump previously used this law during the COVID-19 pandemic to compel businesses to produce ventilators and test swabs. However, the act does not explicitly provide presidents with power to seize private companies outright.
Bannon’s demands extended beyond immigration investigations. He advocated for probes into Musk’s alleged drug use, which has been reported by The New York Times, and claims that the South Africa native attempted to obtain classified Pentagon briefings on China. The former advisor recommended suspending Musk’s security clearance during any investigation and canceling contracts between the federal government and Musk’s various companies.
The confrontation between Trump and Musk began escalating when the Tesla CEO publicly criticized the president’s comprehensive tax and spending legislation, which Musk described as a disgusting abomination. Trump responded by expressing disappointment in his former Department of Government Efficiency chief during an Oval Office meeting on June 5, stating he had helped Musk significantly in the past.
The public dispute intensified throughout Thursday as both men exchanged barbs on their respective social media platforms. Trump threatened to terminate billions of dollars in government subsidies and contracts awarded to Musk’s companies, while Musk fired back by endorsing Trump’s impeachment and later accused the president of being mentioned in Jeffrey Epstein’s files.
Tesla’s stock price suffered significant consequences from the feud, dropping 14 percent on June 5 and losing approximately $150 billion in market value. This represented the largest single-day decline in the company’s history. The financial impact reflected investor concerns about the potential loss of government contracts and subsidies that benefit Musk’s business empire.
Musk initially followed through on his threat regarding SpaceX’s Dragon program but later appeared to back down from the position. The spacecraft plays a crucial role in American space operations, as the United States must rely on private rockets or foreign launch capabilities after retiring its space shuttle program.
The breakdown has created anxiety among staff members at the Department of Government Efficiency, the quasi-governmental body Musk established to support Trump’s federal government reduction objectives. Current DOGE personnel embedded within federal agencies expressed concerns about potential political targeting and career consequences stemming from their association with Musk’s organization.
Several key Musk associates who served as special government employees, including DOGE operational lead Steve Davis, departed with Musk following his exit from the Trump administration after 129 days of service. However, numerous DOGE staff remain integrated across federal agencies including the Office of Personnel Management, Veterans Affairs, Treasury, Internal Revenue Service, and Social Security Administration.
Bannon has maintained a longstanding critical stance toward Musk’s involvement in Trump’s campaign and presidency. In February, he previously referred to Musk as a parasitic illegal immigrant in an interview with a British news outlet, criticizing what he characterized as the billionaire’s attempts to impose experimental policies without respect for American history and traditions.
Musk became a naturalized American citizen in 2002, though critics have raised questions about whether he overstayed the terms of his original student visa. Bannon, who served four months in federal prison after being convicted of contempt of Congress for refusing to provide documents and testimony to the House committee investigating the January 6, 2021 Capitol riot, was released in October.
