President Donald Trump has reassured Americans that he has no intention of targeting Elon Musk’s companies despite recent political clashes, emphasizing his desire for the tech mogul’s businesses to thrive in the United States.
“Everyone is stating that I will destroy Elon’s companies by taking away some, if not all, of the large-scale subsidies he receives from the U.S. Government. This is not so!” Trump posted on social media Thursday. “I want Elon, and all businesses within our Country, to THRIVE.”
The comments follow a deteriorating relationship between the two former allies. Musk, who played a significant role in supporting Trump’s re-election bid, recently launched a new political party and sharply criticized the president’s tax and budget legislation. Musk warned the bill could “bankrupt America,” and Tesla investors have expressed concern over looming cuts to electric vehicle subsidies.
The legislation, signed into law by Trump, will eliminate $7,500 tax credits for new electric vehicle purchases and a $4,000 credit for used EVs after September 30 incentives that have helped fuel Tesla’s growth.
Despite Musk’s frequent criticism of government subsidies, Tesla has historically benefited from billions in federal support, particularly in clean energy and transportation. However, Musk responded to Trump’s latest comments by arguing that SpaceX won its NASA contracts competitively, not through subsidies. “Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!” Musk posted on X.
Their feud escalated in June when Trump reportedly threatened to cancel federal contracts with Musk’s companies, including billions tied to NASA and the Pentagon. Sources revealed that the White House had instructed agencies to review SpaceX’s agreements, raising concerns about possible retaliation.
SpaceX has been seen as the frontrunner for Trump’s proposed $175-billion “Golden Dome” missile defense shield. But with tensions flaring, sources say the administration is now expanding its search for other partners potentially undermining Musk’s dominant position in the defense space.
Despite the friction, Trump’s latest statement signals a possible cooling of hostilities at least for now. Whether the truce holds amid deep policy disagreements remains to be seen.
