Elon Musk (L) shakes hands with Republican presidential nominee, former President Donald Trump back stage during a campaign rally at the Butler Farm Show grounds on October 05, 2024 in Butler, Pennsylvania. (Anna Moneymaker/Getty Images)
OAN Staff Blake Wolf 12:54 PM – Thursday, July 24, 2025
President Donald Trump recently expressed that he wants Elon Musk’s companies — along with American businesses in general— to “thrive,” marking a shift in tone after previously indicating that all federal subsidies to Musk’s enterprises would be eliminated.
President Trump and Elon Musk previously clashed over a significant disagreement regarding the spending levels in Trump’s proposed “One, Big Beautiful Bill.” This dispute ultimately led the president to threaten the withdrawal of federal subsidies for Musk’s companies.
However, some observers, including Trump, argue that Musk was opposed to the bill’s passage from the outset, as it included the elimination of federal electric vehicle (EV) subsidies and the phasing out of the EV tax credit—a provision that would have substantially benefited his company, Tesla.
The EV tax credit is a type of federal EV subsidy, but not all federal EV subsidies are tax credits. The term “federal EV subsidies” is broader and includes financial support for more parts of the EV ecosystem. Other types of federal EV subsidies are DOE grants and loans to EV manufacturers (ex: battery plants or vehicle factories), infrastructure funding (ex: for EV charging stations), regulatory credits (ex: Zero Emission Vehicle (ZEV) credits sold between car companies), and research and development support from federal agencies.
Nevertheless, Musk still labeled Trump’s signature spending bill a “massive, outrageous, pork-filled Congressional spending bill [that] is a disgusting abomination.”
“DOGE is the monster that might have to go back and eat Elon. Wouldn’t that be terrible?” Trump wrote at the time, referencing the Department of Government Efficiency (DOGE). “He gets a lot of subsidies. But, Elon was very upset that the EV mandate is going to be terminated.”
Despite their prior dispute, President Trump now appears to be extending an olive branch, as suggested by a post on Truth Social published Thursday.
“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! The better they do, the better the USA does, and that’s good for all of us. We are setting records every day, and I want to keep it that way!” Trump wrote.
Despite Trump’s previous assertions, Musk has also argued that government subsidies should be eradicated completely — although Tesla has greatly benefited from billions of dollars in tax credits.
Musk said that neither Tesla nor any industry needs public subsidies, and he described government as a poor allocator of capital, according to Business Insider.
Meanwhile, President Trump signed three resolutions on June 12th, ending California’s plan to phase out the sale of diesel-powered medium and heavy duty trucks by 2036. This overturns California’s authority to enforce strict emissions standards for diesel engines, and rescinds the Environmental Protection Agency’s 2023 approval of California’s low-nitrogen oxide regulations for heavy-duty highway and off-road vehicles and engines.
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