President Donald Trump delivered a message to markets and Elon Musk’s companies on Thursday by stating that he will not terminate federal subsidies which support Tesla and SpaceX. Through social media Trump announced his support for Musk and all American businesses to succeed while denying claims about his administration cutting off their funding.
The statements emerged during a period of growing conflict between the two parties after Musk publicly criticized Trump’s tax bill and left his position on the White House advisory committee. The administration started reviewing SpaceX government contracts worth billions of dollars including its position as the leading contender for Trump’s $175 billion Golden Dome missile defense system development.
Tesla faces potential financial challenges because Musk predicts that reduced government support for electric vehicles will cause ”a few rough quarters.” The company’s stock value declined this year because of decreasing EV sales and rising market competition.
Musk continues to be a significant political donor and influential figure despite the existing political tensions. NASA launches and EV tax credits represent two examples of major government support that his companies have received throughout the years. Trump made this statement to calm fears about federal defense and space funding becoming affected by their current dispute.
