President Donald Trump clarified on Thursday that he has no intention of undermining Elon Musk’s companies by pulling federal subsidies, asserting instead that he wants Musk—and all American businesses—to succeed.
“People keep saying I’m going to destroy Elon’s companies by cutting off the substantial subsidies he gets from the U.S. government. That’s false!” Trump posted on social media. “I want Elon, and all businesses in our country, to THRIVE.”
This statement comes after a June 5 fallout between Trump and Musk, once close allies, over Trump’s controversial tax and spending bill. Following the dispute, Musk warned Tesla (NASDAQ: TSLA) investors that reduced government support for electric vehicle producers might lead to a “few rough quarters.”
Just a week after the clash, Reuters reported that the White House ordered the Defense Department and NASA to compile data on SpaceX’s multibillion-dollar contracts—signaling possible retaliatory action against Musk’s companies.
Despite the tension, Musk had previously played a major role in Trump’s re-election campaign, investing over $250 million to support it. He also led the now-defunct Department of Government Efficiency in efforts to slash federal spending and downsize the workforce.
Musk departed the administration in late May to refocus on his tech ventures. The fallout escalated after Musk publicly criticized Trump’s fiscal policies, prompting the president to threaten cancellation of lucrative federal contracts held by Musk’s firms.
SpaceX had been a leading contender for Trump’s $175 billion Golden Dome missile defense project. However, insiders told Reuters that due to the strained relationship, the administration is now widening its search for alternative partners—potentially weakening SpaceX’s standing in the program.
