US President Donald Trump said he would not destroy Elon Musk’s companies by removing federal subsidies and insisted he wants the billionaire 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 U.S. government. This is not so,” Trump said in a social media post. “I want Elon, and all businesses within our country, to thrive.”
The statement follows a public fallout between Trump and Musk on June 5 over tax policy. Musk had warned Tesla investors on Wednesday that cuts in U.S. government support for electric vehicle makers could lead to a “few rough quarters” for the company.
A week after their clash, the White House reportedly instructed the Defense Department and NASA to gather details on billions of dollars in SpaceX contracts, potentially preparing for retaliation against Musk and his companies.
Musk had contributed more than a quarter of a billion dollars to support Trump’s reelection campaign and had briefly led the Department of Government Efficiency in an effort to slash federal spending and reduce the workforce. He stepped down from the role in late May to refocus on his technology ventures.
Their relationship soured shortly afterward, when Musk criticized Trump’s tax-cut and spending bill. Trump responded by threatening to cancel federal contracts worth billions awarded to Musk’s companies.
SpaceX had been considered a leading candidate to help develop Trump’s $175 billion Golden Dome missile defense shield. However, sources familiar with the matter said the administration is now broadening its search for alternative partners, as tensions between Trump and Musk raise questions about SpaceX’s continued dominance in the program.
