Trump Supports Musk's Businesses, Seeks U.S. Companies' Thrival.

US President Donald Trump denied intentions to destroy Elon Musk's businesses by revoking federal subsidies, stating that he wants all US companies to thrive. Trump believes that good company performance benefits the country.

US President Donald Trump has publicly stated that he does not intend to revoke federal subsidies for Elon Musk's companies, clarifying that he wants all US businesses to thrive. This statement comes amidst a recent public feud between the two over federal subsidies and the president's sweeping tax and spending package.

In a post on his Truth Social platform, Trump asserted, "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. This is not so! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!" [1]

Musk, however, has expressed skepticism about the president's intentions. In a response on X, Musk wrote, "The 'subsidies' he's talking about simply do not exist," and criticized the Trump administration for scrapping clean energy incentives while leaving oil and gas subsidies untouched. Musk also noted that Tesla and SpaceX have been affected by these changes, with Tesla's sales potentially impacted by the removal of the $7,500 EV credit under Trump's "One Big Beautiful Bill." [2]

The market's reaction to these developments has been mixed. Tesla's stock fell by 5% after Trump's post on July 1, reflecting investor concerns. Musk's businesses have received at least $38 billion in government contracts, loans, subsidies, and tax credits over the last 20 years, underscoring the potential financial impact of any changes to these incentives. [2]

The latest developments have also had implications for other sectors. South Korean battery firm LG Energy Solution (LGES) has warned of a further slowdown in demand due to U.S. tariffs and policy uncertainties. LGES aims to offset weaker EV battery sales by focusing on energy storage system (ESS) batteries, expanding its U.S. ESS battery capacity to over 30 gigawatt hours (GWh) by next year. [3]

In a broader context, the ongoing public feud between Trump and Musk highlights the potential political and economic implications of federal subsidies and tax policies. As the U.S. continues to navigate the transition to electric vehicles and renewable energy, the stability and predictability of government support for these industries will be crucial for both investors and businesses.

References:
[1] Reuters. (2025, July 24). Trump says he wants Musk's companies to thrive. Retrieved from https://www.reuters.com/business/autos-transportation/trump-says-he-wants-musk-his-companies-thrive-us-2025-07-24/
[2] Business Insider. (2025, July 25). Musk slams Trump's claim his companies will still get subsidies. Retrieved from https://www.businessinsider.com/musk-slams-trump-claim-his-companies-will-still-get-subsidies-2025-7
[3] Reuters. (2025, July 25). LG Energy Solution warns slowing EV battery demand due to US tariffs policy. Retrieved from https://www.reuters.com/business/autos-transportation/lg-energy-solution-warns-slowing-ev-battery-demand-due-us-tariffs-policy-2025-07-25/