Trump Walks Back Threats to Musk: ‘I Want Him to THRIVE Like Never Before’
In a significant U-turn, US President Donald Trump has walked back his threats to cut federal funding for Elon Musk’s companies, declaring on his Truth Social platform that he wants the tech billionaire to “THRIVE like never before.” This abrupt change of heart follows weeks of public feuding and threats from Trump to terminate billions in government subsidies and contracts that support Musk’s ventures, including Tesla, SpaceX, and xAI.
Addressing the speculation directly, Trump wrote, “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 US Government. This is not so!” He added, “I want Elon, and all businesses within our Country, to THRIVE… The better they do, the better the USA does, and that’s good for all of us.”
This conciliatory message is a stark reversal from his stance just last month, when Trump stated, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
The President’s post also followed recent comments from White House Press Secretary Karoline Leavitt, who had indicated that she didn’t believe Trump supported a new government contract with Musk’s artificial intelligence firm, xAI, and would need to “discuss the matter with the President.”
The public rift between the two influential figures, once seen as allies, deepened after Musk exited the Department of Government Efficiency (DOGE) in late May. At the time, Musk had publicly criticized a spending and tax bill by Trump that aimed to roll back federal EV subsidies—a policy that would directly impact Tesla’s business.
Despite Musk’s repeated public statements opposing government handouts, his companies have been significant beneficiaries of billions of dollars in federal contracts, grants, and tax credits for initiatives in clean energy, space exploration, and electric vehicles.
