President Donald Trump has escalated his sudden rupture with Elon Musk by implying the government could sever ties with the tech titan’s businesses.
“The most straightforward way to cut costs in our Budget, saving Billions upon Billions, is to end Elon’s Governmental Subsidies and Contracts. I’ve always been puzzled as to why Biden didn’t do it,” Trump stated in a Truth Social post on Thursday afternoon.
Trump’s remark coincides with an unexpected back-and-forth between Musk and Trump that unfolded on Thursday. This occurred after the president expressed his dissatisfaction with Musk’s criticism of the Republican legislative bill currently progressing through Congress, while speaking to reporters in the Oval Office.
In response, Musk went on a rant on X, posting several criticisms throughout early Thursday morning targeting Trump, the bill, and various Republican officials.
In response to another Trump post, Musk said the president was lying.
Various estimates have been put forward on just how much Musk’s firms, primarily SpaceX and Tesla, benefit from government contracts and subsidies. The Washington Post has put the figure at $38 billion.
The value of government support to SpaceX, which includes Musk’s high-profile space-launch ventures in addition to its Starlink satellite subsidiary — is worth $22 billion alone, according to comments made by SpaceX chief Gwynne Shotwell.
Tesla has benefited from approximately $11.4 billion in regulatory credits aimed at boosting electric-vehicle purchases, though that figure also includes state subsidies.
Reuters has reported that the true figure is classified due to the nature of many of the contracts Musk’s firms are under.
Shares in Tesla, which had already fallen 8% on Thursday as the tit-for-tat escalated on social media, declined as much as 12% following Trump’s post.
