Elon Musk has turned down a peace offering from Donald Trump, who promised not to dismantle Musk’s business empire. In a recent post on Truth Social, Trump declared support for US businesses, including Tesla and SpaceX, emphasizing they should “THRIVE like never before.” He also assured that large-scale federal subsidies aiding Musk’s ventures would remain intact.
Trump's conciliatory tone seemed to indicate a thaw in the long-standing feud between the two former allies. However, Musk sharply countered, addressing each point.
Musk criticized Trump’s claim about not eliminating subsidies, noting that Trump’s administration has withdrawn or terminated nearly all renewable energy incentives, including the US$7,500 federal EV tax credit that had directly benefited Tesla.
On SpaceX, Musk argued that the company’s success is based on merit. “SpaceX won NASA contracts by doing a better job for less money,” he countered, warning that awarding those contracts to other firms could “leave astronauts stranded and taxpayers on the hook for twice as much.”
This exchange comes amid heightened tensions sparked by Musk’s controversial post claiming that “Donald Trump is in the Epstein files,” a statement he later deleted.
Trump previously retaliated, arguing that canceling Musk’s government contracts and subsidies would save the country billions of dollars. These strong words were echoed in a June interview, where Trump said cutting federal support to Tesla and SpaceX was the easiest way to reduce government spending.
What makes this confrontation especially striking is its political and financial context. Trump’s efforts to roll back EV incentives directly impacted Tesla’s bottom line, even when traditional energy subsidies remained untouched.
Musk seized on this irony, stressing that Trump’s ‘Big Beautiful Bill’ disproportionately hurt clean-energy innovation while favoring fossil fuels.
Furthermore, Musk’s defense of SpaceX shows his confidence in the company’s operational capabilities, even as political pressure mounts. Any attempt to strip SpaceX of lucrative NASA contracts, he warns, could compromise US space missions and significantly raise taxpayer costs.
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This spat between two high-profile figures may seem personal. Still, it reflects broader policy and economic tensions in the US, from energy subsidies to tech ambition and the fate of government contracts. Trump’s political stage and Musk’s spotlight highlight how policy shifts can significantly impact private enterprise.
As the two continue to spar in public, the real question may be less about reconciliation and more about power, influence, and the ever-shifting relationship between tech CEOs and political heavyweights.