Trump says he's not trying to 'destroy' Elon Musk's businesses by scaling back subsidies Tesla has thrived on
Chris Unger/Zuffa LLC
- President Donald Trump said he isn't trying to hurt Elon Musk's companies.
- Trump said the better Musk's companies perform, the better the US does.
- It's the latest turn since the once-close allies had a public falling out in June.
President Donald Trump is looking to set the record straight on his stance on Elon Musk's companies.
"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," Trump wrote in a post on Truth Social. "This is not so! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!"
Trump said that the better Musk's companies and other American businesses perform, "the better the USA does, and that's good for all of us."
Musk, who once described himself as "First Buddy" after spending heavily to help elect Trump, has seen his business empire affected by the president's economic policies.
Tesla's stock previously sank 5% after Trump criticized the amount of government subsidies the automaker has received. A Washington Post analysis published in February said that Musk's companies had received at least $38 billion in federal contracts, subsidies, tax credits, and loans over the last two decades.
Trump's signature "One Big Beautiful Bill Act" ends a $7,500 tax credit for electric vehicles later this year. On Tesla's recent earnings call, its chief financial officer, Vaibhav Taneja, said Americans looking to buy an EV should do so now. After the tax credit expires, the overall price that Americans pay for many EVs is expected to rise.
Trump's Truth Social post comes a day after the White House suggested xAI's government contracts could receive scrutiny.
When asked if Trump supported federal agencies contracting with Musk's artificial intelligence firm, White House press secretary Karoline Leavitt responded, "I don't think so, no."
The Pentagon recently announced a contract with xAI worth up to $200 million. Musk's company also recently announced products aimed at governmental needs.
Musk played a vital role in helping Trump take back the White House in 2024, spending upward of $250 million to boost Trump and establishing his own America PAC. Musk's political power grew when he was the de facto leader of the White House DOGE office before the two had a public falling out in June shortly after his official government work ended.
Since then, Musk has floated starting a third party, named the America Party, which could complicate Trump's efforts to help Republicans maintain control of Congress.