US President Donald Trump denied claims that he wants to destroy Elon Musk’s companies. On Thursday, he said on Truth Social that he supports Musk and wants his businesses, and others in the U.S., to succeed.

Trump posted, “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! 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!”

Earlier Threats Raised Concerns

Earlier this month, Trump had threatened to end federal subsidies given to Musk’s companies. These subsidies amount to billions of dollars and support Tesla and SpaceX.

A Longstanding Feud

The relationship between Trump and Musk has been rocky. They were once allies, but tensions increased after Musk left the Department of Government Efficiency.

Things worsened when Musk criticized Trump’s new bill, often referred to as the “big beautiful bill.” This bill aims to remove subsidies for electric vehicles (EVs). Tesla, the top EV maker in the U.S., has greatly benefited from these subsidies.

In response to Musk’s criticism, Trump said, “He’s upset that he’s losing his EV mandate and … he’s very upset about things but he can lose a lot more than that.”

Musk’s Political Move

In a bold reaction, Musk hinted he might form a new political party. Days later, he launched the ‘American Party’. Musk said this new party would help return “freedom” to U.S. citizens. He also pledged to spend millions to unseat lawmakers who supported the bill.

Growing Political Tensions

Republican leaders now fear that the ongoing battle between Musk and Trump could hurt their chances in the 2026 midterm elections. Some worry that this internal conflict might divide voter support.

Musk’s Past Support and Changing Views

Although Musk has often spoken against government subsidies, Tesla has used them extensively. These include tax credits and policy benefits for clean energy and EVs.

A key subsidy under threat is the $7,500 consumer tax credit for EV buyers. This credit helped increase Tesla’s sales.

Market Impact and Tesla’s Risks

Tesla’s stock prices have fallen since Trump’s bill entered public discussion. On Thursday, Tesla’s shares dropped by 7.67%, standing at $307.05 as of 7:34 PM (IST).

Experts say that Tesla, which forms the bulk of Musk’s wealth, could suffer the most from these changes. Especially since it’s investing heavily in a new robotaxi program now under testing in Austin, Texas.

The U.S. Transportation Department will decide if Tesla can move forward with its plan to produce self-driving cars without steering wheels and pedals.

Billions at Stake for Musk’s Companies

Besides Tesla, Musk’s aerospace company SpaceX also stands to lose. SpaceX holds around $22 billion in federal contracts. Meanwhile, Tesla has earned almost $11 billion by selling regulatory credits to other automakers that fail to meet emission standards.

Treasury Response

U.S. Treasury Secretary Scott Bessent also responded to Musk’s criticism of the bill. He said, “I’ll take care of” the nation’s financial matters, indicating the government’s firm stance.