U.S. President Donald Trump has dismissed claims that he intends to undermine Elon Musk’s companies by cutting off federal subsidies, stating instead that he supports their success.
“People are saying I’ll destroy Elon’s companies by taking away some or all of the major subsidies he gets from the U.S. government. That’s not true,” Trump wrote in a social media post. “I want Elon—and all businesses in America—to thrive.”
The statement comes after a public clash between President Trump and Elon Musk on June 5 over tax policy. On Wednesday, Musk cautioned Tesla investors that a reduction in U.S. government support for electric vehicle manufacturers could result in “a few rough quarters” for the company.
Just a week after their dispute, the White House reportedly directed the Defense Department and NASA to compile detailed information on SpaceX’s multibillion-dollar contracts—signalling a possible move to retaliate against Musk and his businesses.
Musk had previously donated over \$250 million to support Trump’s reelection campaign and briefly headed the Department of Government Efficiency, where he focused on cutting federal spending and downsizing the government workforce. He stepped down from the position in late May to concentrate on his tech ventures.
Their relationship quickly deteriorated after Musk criticised Trump’s tax-cut and spending legislation. In response, Trump threatened to revoke billions of dollars in federal contracts awarded to Musk’s companies.
SpaceX had been a frontrunner to participate in the development of Trump’s proposed \$175 billion Golden Dome missile defense shield. However, sources say the administration is now expanding its search for alternative contractors as tensions between the two men cast doubt on SpaceX’s future role in the programme.
