Elon Musk's feud with President Donald Trump has reignited, with the tech billionaire threatening to launch a new political party, and Trump suggesting Musk could be punished for his opposition.

"If this insane spending bill passes, the America Party will be formed the next day," Musk wrote in an X post on Monday.

The billionaire, whose ties with the president have frayed in the past month, attacked GOP lawmakers backing the Trump’s spending bill while boosting its critics.

In a post on Truth Social, Trump took aim at Musk for the subsidies his companies have received, particularly for electric vehicles. Trump said without them, Musk would "probably have to close up shop and head back home to South Africa." Trump had also said "we'll have to look" when asked if he would consider deporting Musk.