In an unexpected turn, President Trump reached out to his one-time ally, Elon Musk, amid their ongoing disagreements. On his Truth Social platform, Trump reassured fans that he doesn’t intend to harm Musk or his businesses. He stated, “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!”
This statement appears to be a reaction to a recent report from the Wall Street Journal. The article suggested that Trump’s administration considered canceling some federal contracts linked to Musk’s company, SpaceX. Notably, only days after Trump broached the idea of severing ties with Musk, “the Trump administration initiated a review of SpaceX’s contracts with the federal government.” This review was reportedly ordered by a senior official at the General Services Administration.
Shortly after Trump’s conciliatory message, Musk took to his own social media platform, X, to respond. “The ‘subsidies’ he’s talking about simply do not exist,” Musk commented. “DJT has already removed or put an expiry date on all sustainable energy support while leaving massive oil & gas subsidies untouched. SpaceX won the NASA contracts by doing a better job for less money. Moving those contracts to other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much!”
Attempts to reach the White House, Tesla, and SpaceX for comment were made by Gizmodo, with updates pending.
The ups and downs of the Trump-Musk relationship have been quite a spectacle. From camaraderie to conflict, the saga between a former reality TV star and his high-profile supporter is a drama for the ages—akin to a comedy movie script. Take note, Trey Parker and Matt Stone.
Musk has likely felt the sting from Trump’s One Big Beautiful Bill, which scrapped the federal government’s electric vehicle (EV) mandate. This mandate was crucial for generating revenue for Tesla through the regulatory credit market, which involves state and federal fines against automakers not adhering to environmental standards. CNN explains that the OBBB aimed to roll “back those standards” and strip “states of the power to set their own emissions rules,” potentially devastating the market for credit sales.
How have Trump’s actions affected Elon Musk’s businesses? Trump’s policies have raised concerns regarding the sustainability of subsidies for green technologies, which could impact companies like Tesla and SpaceX.
What are the implications of their relationship for the tech industry? The dynamic between Trump and Musk can influence public perception and funding within the tech sector, potentially impacting innovation and investment.
Is Elon Musk’s response typical of his communication style? Yes, Musk often uses social media to provide immediate reactions, sharing his unfiltered opinions with the public.
What financial consequences could arise from potential federal contract cancellations? Cancelling contracts could lead to significant losses for SpaceX, affecting future missions and financial stability.
In today’s political and business landscape, the interactions between figures like Trump and Musk continue to shape public discourse. Keep exploring the latest in tech and politics by visiting Moyens I/O for further insights and analyses.