President Trump Denies Plans to Undermine Elon Musk’s Businesses Amid Ongoing Feud

Washington, D.C., The Gulf Observer: U.S. President Donald Trump on Thursday rejected claims that he intends to harm the businesses of tech billionaire Elon Musk, amid growing speculation over federal support and government contracts awarded to Musk’s ventures.

Responding to concerns about whether his administration supports continued collaboration between federal agencies and Musk’s companies, Trump took to his social media platform, Truth Social, stating:

“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 continued, emphasizing his support for economic prosperity and innovation:

“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!”

The statement comes a day after White House Press Secretary Karoline Leavitt was asked whether Trump supports federal agencies partnering with Musk’s artificial intelligence company, xAI. Leavitt said she was uncertain about the president’s stance and would consult him on the matter.

Last week, xAI secured a significant U.S. Department of Defense contract valued at up to $200 million, joining other major tech firms including Anthropic, Google, and OpenAI. The contract is aimed at accelerating AI development for national security. xAI also recently launched its “Grok for Government” product suite tailored for federal agencies.

Despite Thursday’s remarks, Trump had previously voiced strong opposition to government subsidies awarded to Musk’s companies. In June, he 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 relationship between Trump and Musk has grown increasingly strained since late May, coinciding with Musk’s departure from a special advisory role in the federal government and his public criticism of Trump’s economic policies, particularly a major spending and tax bill.

While Thursday’s comments suggest a more conciliatory tone, the future of federal cooperation with Musk’s companies remains a subject of speculation amid the ongoing political and personal tensions between the two prominent figures.