'I want Elon…': Donald Trump denies 'destroying' Musk's companies in US
Earlier this month, Trump had threatened to cut off billions of dollars in subsidies that Elon Musk's companies receive from the federal government.
In contrary, Trump posted on Truth Social, '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! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before! 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!'
The Trump-Musk feud
The Tesla CEO and the US President, one-time allies, have engaged in a war of words every now and then. Their fallout came after Musk's exit from the Department of Government Efficiency.
Trump's threat to Musk came after the world's richest man once again criticised the President's 'big beautiful bill'. The bill, which has been passed by the Senate with a narrow margin, would eliminate subsidies for electric vehicle purchases, a factor that has benefited Tesla, the leading EV maker in the US, so far.
"He's upset that he's losing his EV mandate and … he's very upset about things but he can lose a lot more than that," Trump had told reporters.
The boiling feud between Trump and Musk came as a shocker for many, as the Tesla CEO was once the biggest campaigner for the President, having spent hundreds of millions of dollars on his re-election to the White House.
While previously, Musk has several times opined that government subsidies should be eliminated, Tesla has benefited from the billions of dollars in tax credits and other policy benefits due to its business in clean transportation and renewable energy.
Many of these policies, some of which are targeted in the big beautiful bill, are under the control of the Trump administration. This includes a $7,500 consumer tax credit that has made buying or leasing electric vehicles more attractive for consumers.
Tesla shares have been dropping since the tax cut and spending bill came into the picture. The company's shares on Thursday stood at $307.05, down by 7.67 per cent as of 7:34 pm (IST).
In response to Trump's threat, Musk had also hinted at starting a new political party, vowing to spend millions of dollars to remove lawmakers who back the tax bill.
Just a few days later, Musk announced the formation of a new political outfit, the 'American Party'. He said the party had been formed to give back to US citizens their "freedom".
Republicans expressed concern that the on-and-off feud between Trump and Musk could potentially harm their chances to protect their majority in the 2026 mid-term congressional elections.
Treasury Secretary Scott Bessent had also hit back at Musk's criticism of the big beautiful bill, saying, "I'll take care of" the country's finances.
While the feud has the potential to harm Musk's entire business empire, the maximum damage could be incurred by Tesla, which is the primary source of his wealth. Musk's business bets heavily on the success of its new robotaxi program, which is currently being tested in its headquarters in Austin, Texas.
The US Transportation Department, which regulates vehicle design, will play a major role in deciding whether Tesla can mass-produce robotaxis without steering wheels and pedals.
Tesla gets regulatory credits for selling EVs and has gained nearly $11 billion by selling those credits to automakers who are unable to comply with the strict vehicle emission rules.
Elon Musk's SpaceX also holds around $22 billion in federal contracts.
(with inputs from Reuters)
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