WASHINGTON (BN24) — President Donald Trump said Thursday that he has no intention of dismantling federal support for Elon Musk’s companies, despite recent tensions between the two high-profile figures. The statement appears to be an effort to calm growing speculation that Trump may retaliate against the billionaire entrepreneur by revoking government subsidies and contracts.
“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 post on social media. “I want Elon, and all businesses within our country, to thrive.”
Trump’s comments follow a public rift with Musk earlier this month over economic policy. On June 5, the two clashed over Trump’s tax and spending proposals, prompting Musk to openly criticize the administration’s economic direction. In response, Trump reportedly threatened to cut off billions in federal contracts awarded to Musk’s companies, including Tesla and SpaceX.
The dispute has fuelled uncertainty in Washington and Silicon Valley. Just a week after their confrontation, the White House allegedly directed the Department of Defence and NASA to compile detailed accounts of current SpaceX contracts, suggesting possible preparation for a formal review or even retaliation.
The friction has cast a shadow over Musk’s enterprises, particularly SpaceX, which is heavily reliant on government partnerships. The company had been considered a frontrunner in Trump’s $175 billion Golden Dome missile defence initiative, a cornerstone of his national security platform. However, sources close to the program now say the administration is broadening its search for new contractors amid concerns about Musk’s standing with the president.
Despite the political strain, Musk warned Tesla shareholders on Wednesday that reductions in federal support for electric vehicle makers could lead to “a few rough quarters.” The warning rattled markets already anxious about regulatory uncertainty and long-term sustainability in the EV sector.
Musk, who previously donated more than $250 million to support Trump’s 2024 reelection bid, was once closely aligned with the administration. He briefly led the Department of Government Efficiency, a short-lived office tasked with cutting federal spending and reducing bureaucratic waste. Musk resigned from the post in late May, citing a need to focus on his growing portfolio of private-sector ventures.
While Trump’s latest statement appears aimed at mending ties or at least averting deeper economic fallout, questions remain about the future of Musk’s federal relationships. With contract reviews underway and tensions lingering, the stability of key programs—ranging from space exploration to defense technology—could hinge on whether the two billionaire powerhouses can find common ground again.
