Bannon made these remarks on his War Room podcast, reacting to Musk's threat to decommission SpaceX's Dragon spacecraft after Trump considered canceling government subsidies to Musk's companies.
Bannon suggested Trump invoke the Defense Production Act to seize SpaceX, claiming Musk is in the country illegally despite becoming a U.S. citizen in 2002.
Speaking with the New York Times, Bannon doubled down on his deportation call and urged the Trump administration to investigate Musk's immigration status.
Musk, who previously vowed to root out more than $1 trillion in federal waste, was only able to cut $170 billion despite over 270,000 people losing their jobs due to sweeping layoffs.