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Published : 24 Jul 2025, 08:32 PM
President Donald Trump said on Thursday he would not destroy Elon Musk's companies by taking away federal subsidies and that he wants the billionaire tech-entrepreneur's businesses to thrive.
"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 US Government. This is not so!," Trump said in a social media post. "I want Elon, and all businesses within our Country, to THRIVE."
Trump's statement follows a public clash with his former close ally on Jun 5 over his tax bill.
Musk warned Tesla investors on Wednesday that US government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company.
A week after the spat in June, Reuters reported the White House had directed the Defense Department and NASA to gather details on billions of dollars in SpaceX contracts to ready possible retaliation against the businessman and his companies.
Musk spent more than a quarter of a billion dollars to help Trump win November's presidential election and led the Department of Government Efficiency's chaotic effort to slash the budget and cut the federal workforce.
The Tesla CEO left the administration in late May to refocus on his tech empire.
Trump and Musk fell out shortly afterward when Musk openly denounced the Republican president's tax-cut and spending bill, leading to threats by Trump to cancel billions of dollars worth of federal government contracts with Musk's companies.
Musk's SpaceX had been considered a frontrunner to build out Trump's $175 billion Golden Dome missile defense shield and remains a natural choice for key elements of the project.
But sources familiar with the matter told Reuters earlier this week that the administration is expanding its search for partners to build Golden Dome as tensions with Musk threaten SpaceX's dominance in the programme.
