Kevin Dietsch
President Donald Trump denied any intentions of destroying Elon Musk’s businesses by revoking federal subsidies and added that he wants all the U.S. companies to survive as their good performance is better for the country.
“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,” Trump said in a social media post.
“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,” Trump wrote.
The tech billionaire responded with a simple “Phew,” posted on X, expressing relief at Trump’s assertion that he would not actively target Musk’s companies.
Earlier in the summer, there were reports of Trump considering revoking some of Musk’s government contracts and ending electric vehicle incentives, which raised investor concerns at Tesla (NASDAQ:TSLA).
The comments come after a public feud between the former close allies after Musk said that Trump’s “big, beautiful” tax bill would bankrupt America.
Musk has previously questioned the narrative around government support, arguing that many of the “subsidies” simply do not exist. His aerospace and defense contractor SpaceX also has massive contract exposure in the U.S.
On Wednesday, Musk said on the Q2 earnings call that Tesla (NASDAQ:TSLA) could experience a “few rough quarters” due to tariff costs and the expiration of federal EV benefits by the end of September.
ETFs to track the broader U.S. market: (NYSEARCA:SPY), (NYSEARCA:VOO), (NYSEARCA:IVV), (NYSEARCA:RSP), (NYSEARCA:SSO), (NYSEARCA:UPRO), (NYSEARCA:SH), (NYSEARCA:SDS), and (NYSEARCA:SPXU).
Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.