President Donald Trump has shot up his sudden feud with businessman and investor, Elon Musk, by implying the government could sever ties with the tech titan’s businesses.
Various estimates have been put forth on just how much Musk’s outfits, primarily SpaceX and Tesla, benefit from the United States (US) government contracts and subsidies.
A report by Reuters reveals, the true figure is classified as a result of the nature of many of the contracts Musk’s firms are under.
President Trump wrote on Truth Social: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
Following the threat from the US President, shares in Tesla, which had already fallen 8% on Thursday as the feud escalated on social media, weakened as much as 15% following Trump’s post. SpaceX is held privately and its shares do not trade on the open market.
Trump’s warning is coming as part of a stunning exchange with the Tesla CEO — who coughed up more than $250 million to help the president clinch victory in the US Presidential Election 2024, that erupted into public view Thursday.
Earlier in the day, President Trump told reporters in the Oval Office that he was disappointed with Elon Musk criticising the Republican policy bill that is making its way through Congress.
Musk has criticized the bill, calling it a “disgusting abomination” amid concerns it would worsen the U.S. fiscal deficit.
President Trump wrote on Truth Social: “Elon was “wearing thin,” I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!
“I don’t mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress. It’s a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn’t pass, there will be a 68% Tax Increase, and things far worse than that. I didn’t create this mess, I’m just here to FIX IT. This puts our Country on a Path of Greatness. MAKE AMERICA GREAT AGAIN!”
Musk, who officially exited the White House last week, parting ways with the Trump government, to spend more time on his companies, used much of Thursday criticizing on X, his social media platform where he shared a variety of critiques of Trump, the bill, as well as, other Republican politicians.
Trump’s warning also raises the specter that Trump could bring back unsettled government investigations into Musk’s firms.
