Trump Vows Not to Cut Elon Musk’s Federal Subsidies Despite Ongoing Feud
- Why Did Trump Reaffirm Support for Musk’s Subsidies?
- How Did the Feud Escalate?
- What’s the Status of Musk’s Federal Deals?
- Could Musk’s Criticism Backfire?
- What’s Next for Musk and Trump?
- FAQs
In a surprising twist, former President Donald TRUMP has publicly declared that he won’t slash federal subsidies for Elon Musk’s ventures, even as tensions between the two billionaires continue to simmer. The announcement comes amid speculation about Musk’s reliance on government funding and the political fallout from their recent clashes. Here’s a deep dive into the drama, the dollars, and what it means for the future of tech and federal partnerships.
Why Did Trump Reaffirm Support for Musk’s Subsidies?
On Thursday, Trump took to Truth Social to shut down rumors that he’d target Musk’s federal funding, writing, “I want Elon and all our country’s companies to thrive—in fact, to prosper like never before. The better they do, the better America does, and that’s good for all of us.” This marked a stark reversal from his June post, where he’d suggested cutting “billions” in subsidies to Musk, even joking that without government support, Musk might “have to close up shop and go back to South Africa.”
How Did the Feud Escalate?
The tension peaked after Musk publicly trashed Trump’s signature “One Big Bill” legislation, calling it a “disgusting abomination.” Though Musk later apologized (“I went too far”), Trump’s response—claiming he held “no grudges”—didn’t stop him from lobbing verbal grenades at Musk in subsequent weeks. The two, once allies during Trump’s presidency, are now locked in a power struggle with billions in federal contracts at stake.
What’s the Status of Musk’s Federal Deals?
Musk’s X.AI recently secured a $200 million Pentagon contract to expand AI systems, deepening his ties to federal agencies. Meanwhile, Tesla, SpaceX, and Starlink continue to benefit from defense and infrastructure agreements. But the WHITE House’s stance remains shaky: when asked if Trump supports agencies working with Musk’s AI projects, press secretary Karoline Leavitt replied, “I don’t think so,” adding she’d “check with him” about canceling deals involving X.AI’s chatbot, Grok.
Could Musk’s Criticism Backfire?
Musk’s attacks on Trump’s agenda may haunt him. While his apology bought temporary peace, the White House’s mixed signals suggest his federal partnerships aren’t secure. Notably, rivals like Google and Anthropic (which also scored $200M Pentagon deals) haven’t faced Trump’s ire—raising questions about whether Musk’s outspokenness is worth the risk.
What’s Next for Musk and Trump?
The feud underscores the volatile intersection of tech, politics, and money. With Musk’s companies reliant on federal backing—and Trump’s influence looming—their rivalry could reshape everything from AI development to space exploration. For now, though, the subsidies stay. As Trump put it: “America wins when our innovators win.” But in this high-stakes game, the rules keep changing.
This article does not constitute investment advice.
FAQs
Why did Trump change his mind about cutting Musk’s subsidies?
Trump’s shift likely reflects pragmatism. Musk’s companies (e.g., SpaceX’s NASA contracts) are deeply embedded in national infrastructure, making abrupt cuts politically and logistically messy.
How much federal funding does Musk receive annually?
Exact figures are opaque, but estimates suggest Tesla and SpaceX alone have secured over $7 billion in cumulative subsidies and contracts.
Has Musk responded to Trump’s latest comments?
Not publicly—but given their history, a tweetstorm could erupt any minute.
