Former President Donald Trump publicly refuted speculation that he intends to jeopardize Elon Musk’s business ventures by eliminating government subsidies. In a statement shared on Truth Social, Trump clarified, “Many are saying I plan to destroy Elon’s companies by ending his federal subsidies. That’s simply not true. I want Elon—and every U.S. business—to flourish more than ever before. Their success is America’s success.”
Trump’s remarks follow continued tension between the two billionaires, stemming from disagreements over Trump’s major spending bill. Their feud has intensified over time, including personal jabs regarding Musk’s past associations.
In June, Trump threatened to reevaluate Musk’s federal contracts amid the growing dispute. Despite that, Musk has played significant roles under past Trump initiatives and directed substantial financial support toward conservative efforts.
Meanwhile, on a recent Tesla earnings call, Musk warned of challenging quarters ahead due to tariffs and the scheduled phaseout of EV tax benefits by September’s end.
White House press secretary Karoline Leavitt also suggested reluctance toward federal partnerships with Musk’s AI firm, xAI, despite the Pentagon awarding the startup—and three others—contracts worth up to $200 million each on July 14.
SpaceX, Musk’s aerospace company, has reportedly received over $22 billion in federal contracts since 2008, working with NASA, the Air Force, and Space Force. A recent federal review found the majority of SpaceX’s agreements too critical to cut.
Tesla has also earned over $12 billion from the sale of environmental regulatory credits since 2015, with $439 million generated in Q2 2025 alone. These credits, mandated by U.S. emissions regulations, are often sold to automakers needing to meet eco-standards.
Tesla’s latest financial filing acknowledged the “One Big Beautiful Bill Act” (OBBBA), expressing concerns that losing federal incentives and tax credits under the bill could increase production costs and weaken consumer demand.
