WASHINGTON: President Donald Trump stated on Thursday that he has no intention of harming Elon Musk’s companies by removing federal subsidies, emphasizing his desire for the entrepreneur’s businesses to succeed.
The comments follow a public disagreement between the two over Trump’s tax policies.
“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 posted on social media.
“I want Elon, and all businesses within our Country, to THRIVE.”
Musk responded on X, denying the existence of such subsidies. “SpaceX won the NASA contracts by doing a better job for less money,“ he wrote.
“Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!”
The exchange comes after Musk warned Tesla investors that potential cuts in government support for electric vehicles could impact the company’s performance.
Despite advocating for reduced subsidies, Tesla has historically benefited from tax credits and clean energy incentives.
A recent tax bill signed by Trump will phase out EV tax credits by September 30, affecting both new and used electric vehicle sales.
Musk had previously supported Trump’s election campaign but later criticized his tax policies, leading to tensions.
The White House reportedly reviewed SpaceX contracts following their fallout, raising concerns about the company’s role in Trump’s missile defense project.
However, sources indicate the administration is now considering additional partners for the initiative. – Reuters
