Today former President Donald Trump denied accusations that he plans to harm Elon Musk’s companies, such as Tesla and SpaceX, by cutting off federal support.

Responding to recent speculation, Trump posted on Truth Social: “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!”

He added, “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 added.

Though Trump had previously threatened to revoke billions in government subsidies to Musk's ventures, his recent statements mark a softer stance. The two have had a turbulent relationship in recent weeks, with tensions rising after Musk’s departure from the Department of Government Efficiency. Despite their past alliance, Trump emphasized his broader commitment to American business success.

It was reported over the past week that President Trump had expressed a willingness to harm Musk’s companies by targeting their federal funding and contracts.

Following a public feud between the two men—intensified after Musk left his government advisory role—Trump reportedly suggested he could retaliate by canceling contracts with Musk’s businesses, including SpaceX.

WSJ reported that after tensions between President Trump and Elon Musk escalated in early June 2025, the Trump administration began reviewing SpaceX’s multibillion-dollar government contracts to assess potential waste and whether any could be canceled.

This move followed Trump's public suggestion that terminating Musk’s federal deals would be an effective cost-cutting measure. The General Services Administration asked several agencies, including the Defense Department and NASA, to compile detailed spreadsheets—known as “scorecards”—on SpaceX’s active contracts, evaluating their financial value and whether any competitors could fulfill the same roles.

However, after reviewing the data, officials concluded that most of the contracts were essential to national security and space exploration, making them difficult to terminate.

SpaceX’s dominance in the launch and satellite sectors left the government with few viable alternatives. Despite ongoing frustrations and scrutiny, the company continued securing major contracts, including a $5.9 billion Pentagon deal for 28 national-security launches.

SpaceX’s proven track record, reusable rocket technology, and critical role in programs like Crew Dragon and Starlink have solidified its position as a cornerstone of U.S. space and defense operations—even amid political friction.

Most recently, White House press secretary Karoline Leavitt said she did not believe Trump supported federal agencies contracting with Musk’s AI company, xAI, which had just secured a $200 million deal with the Department of Defense.