Trump says he wants Musk and his companies to thrive in US
The remarks follow a public clash with his former close ally over his tax bill. In July, the space and automotive billionaire announced the formation of a new political party, saying Trump's "big, beautiful" tax bill would bankrupt America.
"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. This is not so!" Trump said in a social media post.
"I want Elon, and all businesses within our country, to THRIVE."
In a post on X, Musk said the "subsidies" Trump was referring to simply do not exist.
SpaceX won the NASA contracts by doing a better job for less money, he added. "Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!"
The president's comments came shortly after Musk warned Tesla investors on Wednesday that US government cuts in support for electric vehicle (EV) makers could lead to a "few rough quarters" for the company.
Though Musk has often said government subsidies should be eliminated, Tesla has historically benefited from billions of US dollars in tax credits and other policy incentives due to its business in clean transportation and renewable energy.
Sweeping tax and budget legislation approved by Congress and signed by Trump will halt the US$7,500 tax credit for buying or leasing new EVs on Sept 30, as well as a US$4,000 credit for used EVs, both of which have supported EV sales in recent years.
Before their relationship soured, Musk had spent more than a quarter of a billion US dollars to support Trump's bid to win the November presidential election, and led the Department of Government Efficiency's chaotic effort to slash the budget and trim the federal workforce.
The Tesla CEO left the administration in late May to refocus on his technology businesses.
Trump and Musk fell out shortly afterwards when Musk openly denounced the Republican president's tax-cut and spending bill, prompting Trump to threaten the cancellation of federal government contracts worth billions with Musk's companies.
A week after the June spat, Reuters reported that the White House had directed the Defence Department and NASA to gather details on billions of US dollars in SpaceX contracts in preparation for possible retaliation.
Musk's SpaceX had been seen as a frontrunner to build Trump's US$175 billion Golden Dome missile defence shield and remains a natural contender for key parts of the project.
However, sources told Reuters this week that the administration is expanding its search for partners to develop Golden Dome, as tensions with Musk threaten SpaceX's lead in the programme.
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