US President Donald Trump has walked back his threat to cancel federal subsidies for Elon Musk’s companies, saying he wants Musk to continue to prosper. However, Musk claims the subsidies do not exist and that the Trump administration has already scrapped or expired clean energy incentives while leaving massive oil and gas subsidies untouched.
Musk’s electric vehicle company, Tesla, is feeling the pinch as a result of these changes. During its earnings call on Wednesday, Tesla reported that removing the $7,500 EV credit under Trump’s “One Big Beautiful Bill” would affect its US sales. Musk has warned that rerouting SpaceX’s work to other aerospace companies would leave astronauts stranded and taxpayers with twice the cost.
The tension between Trump and Musk began in June when Musk attacked Trump’s signature tax bill on X, calling it a “mountain of disgusting pork.” Trump responded by threatening to cancel Musk’s government contracts. The dispute escalated after Musk said he’d start a new political party and defeat GOP politicians who voted for the tax bill.
Trump later claimed that Musk’s companies would receive more subsidies than any human being in history, but Musk dared him to follow through on his threat: “I am literally saying cut it all. Now.” As a result, Tesla’s stock fell by 5% after Trump’s post on July 1.
Source: https://www.businessinsider.com/musk-slams-trump-claim-his-companies-will-still-get-subsidies-2025-7