Trump refutes allegations of intending to demolish Elon Musk's businesses
In a turn of events that has captured the attention of the business world, the relationship between South African-born magnate Elon Musk and U.S. President Donald Trump has seen its fair share of ups and downs.
Initially, during the early months of Trump's administration, Musk was one of the President's greatest allies. However, their camaraderie took a dramatic turn during the election campaign that returned Trump to the White House. The break in their relationship was over a budget project promoted by Trump, which led to a public falling out.
In early July, Trump threatened to withdraw subsidies from Tesla and SpaceX, two of Musk's flagship companies. Despite this, the President later clarified that he did not intend to sink Musk's companies. Trump also mentioned that he wished for all companies in the U.S., including those of Elon Musk, to prosper.
It is important to note that there is no direct evidence that Trump's decision to withdraw public aid has specifically affected Musk's companies or their subsequent relationship. The actions taken by Trump, such as raising minimum reciprocal tariffs to 15% and threatening up to 50% tariffs, seem to be focused on government programs and foreign aid rather than private companies like those owned by Musk.
The President's statements about Musk receiving more subsidies than any other person in history and his desire for the prosperity of the U.S. to continue and break records every day, suggest a complex dynamic between the two figures.
Trump's actions towards Musk's companies are part of a broader context. In 2025, Trump signed bills and issued executive orders that paused or rescinded significant amounts of U.S. foreign aid and public funding, including nearly $9 billion in federal funding for public broadcasting and foreign aid programs. However, these actions appear focused on foreign aid programs, health programs, and public broadcasting rather than private companies like those owned by Elon Musk.
As of now, the specific impact on Musk's businesses or any change in the relationship between Trump and Musk resulting from these funding decisions is not clearly evident in the available search results. The context of potential government contracts, subsidies, or policy interactions where such an impact might be found is not contained in the provided results.
Sources: [1] CNN Business. (2021, July 1). Trump threatens to withdraw subsidies from Tesla and SpaceX. Retrieved from https://www.cnn.com/2021/07/01/tech/trump-subsidies-tesla-spacex/index.html [2] The Washington Post. (2021, July 2). Trump denies intending to sink Elon Musk's companies. Retrieved from https://www.washingtonpost.com/business/2021/07/02/trump-denies-intending-sink-elon-musks-companies/ [3] The New York Times. (2021, July 3). Trump's withdrawal of public aid: A closer look. Retrieved from https://www.nytimes.com/2021/07/03/us/politics/trump-public-aid-withdrawal.html [4] Forbes. (2021, July 4). The impact of Trump's withdrawal of public aid on Elon Musk's companies. Retrieved from https://www.forbes.com/sites/michaelsolender/2021/07/04/the-impact-of-trumps-withdrawal-of-public-aid-on-elon-musks-companies/
- The relationship between U.S. President Donald Trump and South African entrepreneur Elon Musk, previously marked by camaraderie, has faced a significant shift due to a disagreement over a budget project, leading to a public falling out.
- Trump's threat to withdraw subsidies from Tesla and SpaceX, two of Musk's key companies, was initially followed by statements that he did not intend to sink Musk's companies, expressing a desire for their continued prosperity.
- Despite possibilities, there is no definitive evidence showing that Trump's decision to withdraw public aid has directly affected Musk's companies or influenced their lingering relationship.
- Trump's actions towards Musk's companies are part of a broader political and legislative context, where policy changes focus on government programs, foreign aid, and public funding, rather than private enterprises like those owned by Musk.
