President Donald Trump on Thursday sought to ease concerns about a deepening rift with Elon Musk, declaring that he does not intend to strip the billionaire entrepreneur’s companies of federal support, despite their recent public feud.
“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 wrote on social media. “I want Elon, and all businesses within our Country, to THRIVE.”
The statement follows weeks of escalating tensions between Trump and Musk, who in July announced the launch of a new political party and condemned Trump’s sweeping tax-and-spending bill as fiscally reckless. Musk warned that the legislation, signed into law by Trump, would bankrupt the country and strain the economy.
Musk, in a post on X, pushed back on the idea that his companies rely on subsidies, asserting that SpaceX earned its lucrative NASA contracts through performance and cost efficiency. “Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much,” he wrote.
The dispute comes as Tesla braces for potential turbulence following the planned expiration of key electric vehicle (EV) tax credits on September 30. The new law phases out the $7,500 credit for new EV purchases and a $4,000 credit for used ones, policies that have historically supported Tesla’s growth.
Although Musk has publicly argued against government subsidies, Tesla and his other ventures, including SpaceX and SolarCity, have benefitted from billions in federal support over the years.
The falling out marks a stark reversal in their once-close alliance. Musk had donated more than $270 million to Trump’s 2024 reelection campaign and briefly led the Department of Government Efficiency. However, he left the administration in May to refocus on his businesses, shortly before publicly denouncing Trump’s fiscal agenda.
Following the rift, reports surfaced that the White House had ordered the Defense Department and NASA to review billions of dollars in SpaceX contracts, potentially signaling retaliation. While SpaceX had been a frontrunner to lead the $175 billion Golden Dome missile defense initiative, officials are now said to be considering alternative partners as tensions escalate.
Despite reassurances from Trump, the future of Musk’s federal partnerships remains uncertain, with political friction casting a shadow over his companies’ role in upcoming national projects.
Written By Rodney Mbua
