Donald Trump has denied claims he is seeking to harm Elon Musk’s business ventures as retaliation for their disagreements over US tax laws. The denial follows concerns that Trump might remove subsidies benefiting Musk’s companies. Trump stated on social media, “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!” He affirmed his desire for Musk and all American businesses to prosper, adding, “The better they do, the better the USA does, and that’s good for all of us.”
The statement comes after Tesla shares experienced a significant drop, shedding 8.2 per cent in New York trading. This decline followed the company’s report of a substantial revenue decrease and Musk’s warning about impending challenges for the electric vehicle manufacturer. Tesla, an electric vehicle and energy company, has been a key player in the automotive industry.
The relationship between Trump and Musk has been turbulent. After a falling out, Musk criticised Trump and considered forming a new political party. Trump responded by threatening to cut government contracts and subsidies to Musk’s businesses. Tesla has cited the loss of electric vehicle subsidies and increased tariffs—both Trump policies—as obstacles for its car and energy divisions.
SpaceX, another of Musk’s ventures, is a major government contractor, working with NASA and the US military. Musk previously served in the Trump administration overseeing cost-cutting initiatives. Trump’s fiscal package, signed into law, has impacted key support mechanisms for Tesla, including tax credits for EV purchasers and regulatory credits that other carmakers use to meet emissions standards.