Donald Trump walks back on rift with Elon Musk: ‘I want him to thrive'

US President Donald Trump pushed back on speculation that his administration plans to pull federal subsidies from Elon Musk’s companies, saying he wants Musk and all American businesses to "thrive like never before."

The remarks came after growing chatter that Tesla, SpaceX, and other Musk-led ventures could face funding pressure from the government, especially as debates continue over electric vehicle incentives.

In a post on Truth Social on Thursday, Trump addressed the rumors directly.

"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," the US President said in a post on Truth Social.

"This is not so! I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before! The better they do, the better the USA does, and that’s good for all of us. We are setting records every day, and I want to keep it that way!" Trump added.

The statement comes days after Musk warned investors that rough quarters may lie ahead, partly due to potential cuts in EV-related incentives.

While Trump did not offer specifics on future policy direction, his message appeared intended to calm market concerns over possible political retaliation or regulatory shifts.

Trump vs Elon Musk

The shift in tone marks a notable thaw in what had become a tense and increasingly public rift between the two men.

Musk was once a high-profile supporter of Trump’s 2024 campaign, contributing more than $250 million and even heading the administration’s Department of Government Efficiency, a role created to streamline federal operations and shrink the public sector.

After Musk resigned from his government post in May 2025, things deteriorated quickly.

The official explanation was that he wanted to refocus on his companies, but there had already been quite tension over spending.

A few weeks later, Musk made it public, calling Trump’s tax bill “utterly insane and destructive.”

Trump didn’t hold back. He floated the idea of canceling federal contracts tied to Musk’s companies.

It wasn’t a formal policy move, but it was enough to spook investors. The message was clear: the relationship had broken down, and business could get caught in the crossfire.

The Tesla challenge

Elon Musk hasn’t sugarcoated the outlook. He’s told investors that if federal EV incentives are rolled back, Tesla could be in for “a few rough quarters.”

The warning wasn’t just about short-term earnings; it was a broader acknowledgment of how dependent the company still is on government policy, especially as it pushes deeper into autonomous driving and other high-cost projects.

Trump’s latest comments seem designed to calm those concerns.

By casting Musk’s companies as vital to the US economy, he’s making the case that continued federal support isn’t about favoritism, it’s about national interest.

It was a notable shift in tone, and one that investors were quick to notice.