Former President Donald Trump has denied claims that he intends to dismantle Elon Musk’s companies by eliminating federal subsidies, asserting instead that he wants Musk’s businesses — and all U.S. enterprises — to succeed.
"People keep saying I’m going to destroy Elon’s companies by cutting some or all of the major government subsidies he gets. That’s simply not true," Trump posted on social media. "I want Elon — and every business in this country — to flourish."
Trump’s remarks come on the heels of a public dispute with Musk on June 5 over federal tax policy. Earlier this week, Musk warned Tesla investors that potential cuts to U.S. subsidies for electric vehicle manufacturers could result in several challenging quarters for the company.
Just days after their falling-out, reports emerged that the White House had directed the Department of Defense and NASA to compile detailed information on the billions of dollars in contracts held by Musk’s aerospace company, SpaceX — a move seen by some as possible retaliation.
Musk, who donated over $250 million to support Trump’s reelection campaign, had also briefly served as head of the Department of Government Efficiency, a role focused on reducing federal spending and shrinking the public workforce. He resigned from the post in late May to concentrate on his tech ventures.
Their relationship deteriorated shortly after Musk criticized Trump’s tax and spending bill. Trump then reportedly threatened to cancel lucrative federal contracts awarded to Musk’s companies.
SpaceX had been a front-runner to contribute to Trump’s proposed $175 billion Golden Dome missile defense initiative. But insiders now say the administration is expanding its search for other potential partners, amid growing doubts about SpaceX’s future role in the project due to the strained relationship between the two men.
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