Trump claims he's not after Musk's companies as EV subsidies disappear
'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 US Government,' Trump said on Truth Social. 'This is not so! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!'
He continued, 'The better they do, the better the USA does, and that's good for all of us. We are setting records every day, and I want to keep it that way!'
His comments followed renewed media attention on the growing rift between the two, sparked by Musk's opposition to a key White House economic bill. Tensions escalated after Musk publicly criticised Trump's flagship tax and spending legislation, formally known as the 'One Big Beautiful Bill Act' (OBBBA). The bill, which came into effect on 4 July, scaled back several clean energy incentives and lifted penalties on carmakers that failed to meet fuel efficiency standards.
Musk, who had once chaired Trump's Department of Government Efficiency, openly broke ranks. In response, Trump reportedly considered reviewing and potentially cutting government contracts with Musk's companies.This shift marked a dramatic change in tone. Musk had previously donated heavily to Trump's re-election effort and played a key advisory role within his administration.Tesla's financial outlook has added fuel to the fire. On Wednesday 24 July, the company warned of difficult months ahead. Speaking during the second-quarter earnings call, Musk said, 'We probably could have a few rough quarters.'The warning came as Tesla posted disappointing revenue numbers. Its stock dropped by 8.2 percent in New York trading that day, continuing a broader 24 percent decline for the year.
Tesla Chief Financial Officer Vaibhav Taneja added more detail on the company's earnings call. He said the OBBBA has 'certain adverse impacts' on Tesla's energy business, especially in residential storage. He warned of a dip in both demand and profit as consumer tax credits expired early. Taneja also revealed that new tariffs had already raised costs by around 300 million dollars in the second quarter alone, with further increases expected later this year.In a regulatory filing, Tesla directly referenced the impact of the new law, stating, 'The loss of previously available tax credits and carbon offset mechanisms may further negatively impact our financial results.' It also warned that OBBBA provisions 'could affect battery cell expenses and impact costs for our consumers, negatively impacting demand.'Responding to Trump's remarks, Musk pushed back strongly. On Thursday, he wrote on X, 'The 'subsidies' he's talking about simply do not exist. DJT has already removed or put an expiry date on all sustainable energy support while leaving massive oil & gas subsidies untouched.'Musk's frustration reflects a broader shift in US federal support for clean energy. Since 2015, Tesla has made over 12 billion dollars from regulatory credit sales, according to FedScout. In the most recent quarter alone, it earned 439 million dollars from these credits, which are part of a system that allows automakers to buy environmental offsets.These incentives have been a key source of revenue, especially as Tesla ramps up investments in autonomous vehicles and next-generation battery tech.The breakdown between Trump and Musk isn't just about legislation. It turned personal. At the height of the feud, Musk posted and later deleted a claim that Trump's name appeared in files related to Jeffrey Epstein, the disgraced financier and sex offender.
The post sparked outrage within Trump's circle and among his supporters. The situation escalated further after The Wall Street Journal reported that Attorney General Pam Bondi had told the president his name was among those in the Epstein files, alongside 'many other high-profile figures.' A Republican-led House committee has now subpoenaed Ghislaine Maxwell, Epstein's convicted accomplice, to testify next month. Trump's team has dismissed the Epstein allegations outright.
'This is nothing more than a continuation of the fake news stories concocted by the Democrats and the liberal media,' White House Communications Director Steven Cheung said. While Tesla grabs headlines, Musk's other ventures haven't been spared. SpaceX, his aerospace firm, has secured more than 22 billion dollars in US government contracts since 2008. These include key deals with NASA, the Air Force, and Space Force.Following the fallout, the Trump administration ordered a review of SpaceX's contracts. Most were deemed essential and allowed to continue.Despite a brief threat from Musk to pull the Dragon spacecraft used by NASA for space station missions, operations resumed. Musk later clarified, 'SpaceX won the NASA contracts by doing a better job for less money.'
Meanwhile, his AI startup xAI is also drawing government attention. Earlier this month, the Pentagon announced that xAI and three other firms had been awarded contracts worth up to 200 million dollars each. But White House Press Secretary Karoline Leavitt indicated that the administration is hesitant about federal agencies collaborating further with Musk's AI projects. Trump and Musk made some effort to dial down hostilities after their public clashes, but the damage is done. Musk's businesses are now navigating policy shifts, rising costs, and political risk, all while investors grow nervous.The relationship between the billionaire entrepreneur and the president he once backed now appears beyond repair. And with both eyeing future influence — one in the tech sphere, the other in the political arena — this uneasy standoff may still have more chapters to come.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
26 minutes ago
- Economic Times
States file lawsuit against Trump administration over efforts to collect SNAP recipients' data
A coalition of 20 state attorneys general filed a lawsuit Monday challenging the Trump administration's demand that their states turn over personal data of people enrolled in a federally funded food assistance program, fearing the information will be used to aid mass deportations. The data demand comes as the Trump administration has sought to collect private information on mostly lower-income people who may be in the country illegally. It has already ordered the Internal Revenue Service and the Centers for Medicare and Medicaid Services to share private information with the Department of Homeland Security to aid in deportation efforts. The U.S. Department of Agriculture told states last week that it had until Wednesday to hand over the data for those enrolled in its Supplemental Nutrition Assistance Program, or SNAP, which serves more than 42 million people nationwide. The USDA said the data will help it combat waste, fraud and abuse. The states' lawsuit seeks an injunction to block the data transfer. In the meantime, state attorneys general in the SNAP lawsuit said they will not disclose what they consider to be private information of recipients - including their immigration status, birthdates and home addresses - because they believe it would be a violation of privacy laws. "It's a bait-and-switch of the worst kind," California Attorney General Rob Bonta said in a Monday afternoon news conference announcing the lawsuit. "SNAP recipients provided this information to get help feeding their families, not to be entered into a government surveillance database or be used as targets in the president's inhumane immigration agenda." In May, the department announced it was seeking the data as part of President Donald Trump's executive order to obtain data from state programs to help root out fraud and waste. "For years, this program has been on autopilot, with no USDA insight into real-time data," USDA Secretary Brooke L. Rollins said in a statement at the time. "The Department is focused on appropriate and lawful participation in SNAP, and today's request is one of many steps to ensure SNAP is preserved for only those eligible." USDA officials declined a request for comment on the USDA did not mention immigration enforcement in the announcement or later notices. It is not clear why USDA officials believe the data will help it weed out fraud and abuse. The agency claims the program is already "one of the most rigorous quality control systems in the federal government." Immigration advocates noted that the Trump administration has used the same argument to obtain other sensitive data, only to later admit it would be using the information to enhance its deportation operations. Trump administration officials, for example, initially claimed they were seeking state Medicaid data to fight fraud. Last week, a top immigration official conceded they would be utilizing that same information to locate officials have threatened to withhold SNAP funding if states fail to comply with their demand for immigrants without legal status are ineligible to receive SNAP benefits, they can apply on behalf of their children who are U.S. citizens or those who are part of a mixed-status the program, formerly known as food stamps, the federal government pays for 100% of the food benefits, but the states help cover the administrative costs. States are also responsible for determining whether individuals are eligible for benefits and for issuing those benefits to enrollees. Immigration and data privacy advocates expressed alarm at the Trump administration's efforts to obtain sensitive SNAP data maintained by states. "The administration has all but told us that their intention is to comb this data and use it for unlawful purposes that include immigration enforcement," said Madeline Wiseman, an attorney with the National Student Legal Defense Network, which filed a lawsuit in May with privacy and hunger relief groups that are also challenging USDA's efforts for SNAP data. (AP)
Mint
28 minutes ago
- Mint
Trump administration offers $1000 exit bonus, free air tickets to illegal immigrants, attorney says ‘latest insult to…'
The United States Citizenship and Immigration Services on Monday again urged illegal immigrants to self-deport, offering them free plane tickets and a $1000 bonus among others — a move that has been called an 'insult' to those who tried to make their way legally. In a post on X, the USCIS said, 'We encourage all aliens in the US illegally to self-deport using the @DHSgov @CBP Home App.' 'Through the App, you'll receive a complimentary plane ticket home, a $1,000 exit bonus upon your return home, and any unpaid fines for failing to depart previously will be forgiven.' A US immigration attorney, Robert Webber, slammed the Donald Trump administration over the $1000 bonus that it has announced for self-deportation. 'I was curious whether any laid off H-1B or L-1 workers have sought the $1,000 exit 'bonus' being offered by the Trump Administration. Or maybe F-1s whose OPT or STEM OPT ran out? But digging into the details, linked in the first comment below, it looks like non-immigrants may not be eligible. Classic,' he said in a post on LinkedIn. Webber also reflected on a case he fought about the Deferred Action for Childhood Arrivals immigration policy that did not allow legal immigrants perks like a work permit. 'I remember when DACA was announced, a widow I represented in H-1B status wanted EADs for her teenage children but because they were here legally as H-4s, they were not eligible for DACA,' he said. Slamming the Trump administration, he said the $1000 exit bonus was the 'latest insult' to legal immigrants. 'The exit bonus: I suppose is is just the latest insult to people who tried to make their way through the legal process. You apparently get nothing. But if you came through irregular means - we will throw $1,000 at you,' he quipped. The move was first announced in May by the Department of Homeland Security, headed by Kristi Noem. The stipend and potential airfare for migrants who voluntarily depart would cost less than an actual deportation, the agency said. The average cost of arresting, detaining and deporting someone without legal status is currently about $17,000, according to the DHS.
Scroll.in
28 minutes ago
- Scroll.in
No call between PM Modi, Trump during Operation Sindoor, trade not discussed: S Jaishankar
External Affairs Minister S Jaishankar on Monday told Parliament that there was no phone call between Prime Minister Narendra Modi and United States President Donald Trump during Operation Sindoor. 'I want to make two things clear: one, at no stage in any conversation with the US, was there any linkage with trade and what was going on,' Jaishankar said during a debate in the Lok Sabha on the Pahalgam terror attack and the four-day India-Pakistan conflict. 'Secondly, there was no call between the Prime Minister and President Trump from April 22, when President Trump called up to convey his sympathy, and June 17 when he called up the PM in Canada to explain why he could not meet him,' he added. The external affairs minister's remark came against the backdrop of Trump repeatedly claiming that he helped India and Pakistan settle the tensions. The US president has also claimed that he pressured both countries into accepting the ceasefire by threatening to stop trade with them. New Delhi has rejected Trump's assertions. Jaishankar also said that Operation Sindoor had ensured that terrorists would no longer be treated as proxies, adding that the military action created a 'new normal' by conveying that cross-border terror attacks from Pakistan would draw an 'appropriate response'. All issues with Pakistan would be settled through bilateral means, the minister said. 'The challenge of cross-border terrorism continues but Operation Sindoor marks a new phase,' he added. The minister said that this 'new normal' had five points. 'One, terrorists will not be treated as proxies; two, cross-border terrorism will get an appropriate response; three, terror and talks are not possible together – there will only be talks on terror,' he said. This would also entail not yielding to 'nuclear blackmail', Jaishankar said. Reiterating comments made by Modi after Operation Sindoor in May, Jaishankar added: 'Finally, terror and good neighbourliness cannot co-exist, blood and water cannot flow together. This is our position.' Earlier during the debate on Monday, Defence Minister Rajnath Singh told the Lok Sabha that it was ' absolutely wrong ' to claim that India halted Operation Sindoor under any pressure. Singh said that India decided to pause its action against the terror camps in Pakistan and Pakistan-occupied Kashmir as it had achieved its political and military objectives. The defence minister also said that nine terror camps were destroyed at the start of the operation of May 7, and that India has proof of damage caused inside Pakistan and Pakistan-occupied Kashmir. Tensions between New Delhi and Islamabad escalated on May 7 when the Indian military carried out strikes – codenamed Operation Sindoor – on what it claimed were terrorist camps in Pakistan and Pakistan-occupied Kashmir. The strikes were in response to the terror attack in Jammu and Kashmir's Pahalgam, which killed 26 persons on April 22. The Pakistan Army retaliated to Indian strikes by repeatedly shelling Indian villages along the Line of Control in Jammu and Kashmir. At least 22 Indian civilians and eight defence personnel were killed in the shelling. India and Pakistan on May 10 reached an 'understanding' to halt firing following the conflict. New Delhi had announced the decision to stop military action minutes after Trump claimed on social media that India and Pakistan had agreed to the ceasefire. The US president had claimed that the ceasefire talks were mediated by Washington. However, the Indian Ministry of Information and Broadcasting had said that the decision to stop the firing was 'worked out directly between the two countries', a position that New Delhi has maintained. Ahead of the Parliament session, the Congress had demanded discussions on a range of matters, including Trump's repeated claims of having brokered the ceasefire.
