Trump says he wants Musk and his companies to thrive in US
WASHINGTON: President Donald Trump said on Thursday (Jul 24) he would not dismantle Elon Musk’s companies by stripping them of federal subsidies and insisted he wants the billionaire entrepreneur’s businesses 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 US government. This is not so,” Trump said in a social media post. “I want Elon, and all businesses within our country, to THRIVE.”
SUBSIDY CUTS LOOM
The statement came after Musk warned Tesla investors on Wednesday that pending cuts to electric vehicle subsidies could lead to a “few rough quarters” for the company. Under tax and budget legislation signed by Trump, the US government will end the US$7,500 tax credit for new EVs and the US$4,000 credit for used ones on Sep 30.
Though Musk has publicly questioned the role of subsidies, Tesla has long benefited from billions of dollars in federal support linked to clean transportation and renewable energy.
TRUMP AND MUSK CLASH
Trump and Musk’s relationship soured in early June after Musk denounced the president’s tax-and-spending plan, calling it fiscally reckless. The clash came just weeks after Musk resigned from his role in the Trump administration to refocus on his business ventures.
Musk, who had previously led the White House's Department of Government Efficiency and spent more than US$250 million to support Trump’s re-election, announced in July the formation of a new political party.
In response to the fallout, Trump reportedly threatened to cancel billions of dollars in public contracts with Musk’s companies. Reuters later reported that the White House instructed the Defense Department and NASA to gather data on existing SpaceX contracts in preparation for potential action.
SpaceX had been a frontrunner in building elements of Trump’s proposed US$175 billion Golden Dome missile defence project. However, tensions between Trump and Musk have prompted the administration to widen its search for alternative contractors.
