Elon Musk hit back at President Trump’s claim that he didn’t want to strip the mogul’s companies of his government subisidies.
Trump seemingly extended an olive branch after the public falling out between the two by denying reports that he had it out for Musk.
“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!” Trump wrote on Truth Social on Thursday.
“I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!”
Shortly afterward, Musk posted a pointed rebuttal on X, writing: “The ‘subsidies’ he’s talking about simply do not exist.”
He added that Trump “has already removed or put an expiry date on all sustainable energy support while leaving massive oil & gas subsidies untouched.”
Elon Musk has fired back at Donald Trump, publicly disputing the president’s claims about subsidies for his companies. REUTERS
“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!” Musk wrote.
Last week, the Wall Street Journal reported that the Trump administration initiated a review of government contracts with Musk’s companies — though officials reportedly determined that canceling those deals were not feasible due to their importance to national security.
Musk on Thursday reacted to President Trump’s Truth Social post in which he spoke of “subsidies” enjoyed by the mogul’s firms. REUTERS
Government support has been instrumental in the growth and scale of Musk’s ventures.
His companies have secured over $38 billion in government funding since 2007, according to public records and contract data, with nearly two-thirds of that amount awarded in the past five years.
The support spans federal, state, and local levels and includes contracts, subsidies, tax incentives and regulatory advantages.
SpaceX, Musk’s aerospace firm, is the largest recipient, benefiting from billions in NASA and Department of Defense contracts.
The US Space Force recently awarded SpaceX a $5.9 billion contract for rocket launches and satellite operations through 2029. NASA has awarded SpaceX approximately $15 billion in contracts for cargo and crewed missions as of 2025.
Shortly afterward, Musk posted a pointed rebuttal on X, writing: “The ‘subsidies’ he’s talking about simply do not exist.” x/SawyerMerritt
Starlink, the satellite internet provider under SpaceX, secured $6 billion in federal contracts between 2022 and 2023 to expand broadband access for rural and military users.
Tesla has received more than $11 billion in regulatory credits and government incentives. The $7,500 federal electric vehicle tax credit alone is worth an estimated $1.2 billion annually to Tesla as of 2025.
In addition, state and local governments have contributed at least $1.5 billion in grants and tax breaks for Tesla factories and battery development, primarily in California, Nevada and Texas.
xAI, Musk’s artificial intelligence company, was awarded a $200 million Department of Defense contract in July 2025 to develop AI technologies for national security and scientific use.
Musk and Trump’s alliance unraveled after the Tesla CEO criticized Trump’s sweeping tax and spending law, known as the “Big Beautiful Bill,” calling it a “disgusting abomination” and warning it would exacerbate the national debt.
SpaceX, Musk’s aerospace firm, is the largest recipient of government contracts, benefiting from billions in NASA and Department of Defense projects. Jennifer Briggs/ZUMA / SplashNews.com
Last month, Trump expressed disappointment and suggested reconsidering government contracts for Musk’s companies.
Musk fired back on social media, referencing allegations linked to Trump’s appearance in the Jeffrey Epstein files.
The feud spiraled from there, with Trump publicly attacking Musk’s character and Musk floating the idea of forming a new political party.