Washington D.C. — In a dramatic shift from months of political back-and-forth, former U.S. President Donald Trump is walking back threats to pull the plug on government support for Elon Musk’s companies, instead offering a surprising message: he wants them to succeed.
“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 Thursday, adding, “I want Elon, and all businesses within our Country, to THRIVE.”
The about-face comes after an increasingly hostile standoff between two of the most polarizing figures in American business and politics.
In July, Musk announced the launch of a new political party and accused Trump’s “big, beautiful” tax bill of setting the country up for financial ruin.
But Musk wasn’t letting the subsidies claim slide. Taking to X (formerly Twitter), the SpaceX and Tesla CEO clapped back: “The ‘subsidies’ Trump is talking about simply do not exist.”
He argued SpaceX won contracts with NASA on merit, not handouts. “Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!”
The verbal sparring didn’t end there.
On Wednesday, Musk warned Tesla investors that looming federal cuts to electric vehicle (EV) incentives could spell trouble for the company.
With the $7,500 tax credit for new EVs and the $4,000 credit for used ones set to expire on September 30, Tesla—and the broader EV market—could be heading into what Musk called “a few rough quarters.”
Ironically, Musk has long advocated for the elimination of government subsidies. Yet Tesla and his other ventures have historically benefitted from billions in tax credits and federal programs thanks to their focus on clean energy and innovation.
Before the Musk-Trump bromance soured, the tech billionaire had invested over $250 million into Trump’s presidential bid and even led the government’s short-lived Department of Government Efficiency.
That experiment collapsed in late May when Musk abruptly exited to refocus on his private tech empire.
The split became public after Musk condemned Trump’s massive tax-and-spending legislation.
Not long after, the White House reportedly ordered NASA and the Pentagon to review SpaceX’s lucrative government contracts—signaling potential retaliation.
At the heart of it all? SpaceX’s central role in building Trump’s ambitious $175-billion “Golden Dome” missile defense project.
Although SpaceX was initially a frontrunner, insiders now say the Trump team is actively seeking alternative partners amid the fallout.
Still, Trump’s latest public praise suggests a possible thaw.
Whether this truce holds—or implodes like a failed rocket launch—remains to be seen. But one thing’s clear: in this battle of billionaires, the stakes are higher than orbit.
