Elon Musk Responds to Trump’s Claims on Subsidies

Elon Musk has pushed back against President Trump’s assertion that the government might not exclude Musk’s business during a recent visit.

Trump seemed to extend an olive branch, addressing rumors about his stance on Musk, claiming that he didn’t have any issues with him.

“Everyone claims he’ll ruin Elon’s company by taking away the huge subsidies he’s been receiving from the U.S. government. That’s simply not true!” Trump commented on True Social.

“I truly hope that Elon and all businesses in this country will prosper more than ever!”

In response, Musk took to X to make a pointed rebuttal, stating, “The ‘subsidy’ he’s referring to simply doesn’t exist.”

He further noted that Trump has maintained significant oil and gas subsidies while support for sustainable energy has already diminished or lapsed.

Musk emphasized, “SpaceX secured the NASA contract by delivering better results at a lower cost. If these contracts shifted to other aerospace firms, astronauts might be stuck and taxpayers would end up paying more!”

Last week, it was reported that the Trump administration, while reviewing contracts with SpaceX, recognized that canceling them wouldn’t be feasible due to their critical role in national security.

Government backing has played a significant role in the expansion of Musk’s companies, with records indicating that they have received over $38 billion in support since 2007, the majority of which came in the last five years.

This assistance spans federal, state, and local levels, including contracts, subsidies, tax breaks, and regulatory advantages.

SpaceX, in particular, has been a major beneficiary, securing various contracts from NASA and the Department of Defense, and currently holds the largest share of government contracts.

Recently, the U.S. Space Force granted SpaceX a $5.9 billion contract for rocket launches and satellite operations through the end of 2029. NASA has allocated around $15 billion in contracts for cargo and crew missions scheduled for 2025.

Starlink, Musk’s satellite internet service, won a $6 billion federal contract from 2022 to 2023, aiming to enhance broadband availability for rural and military users.

Tesla has garnered over $11 billion in government incentives. Notably, the federal electric vehicle tax credit, worth about $1.2 billion annually as of 2025, is just part of the financial support received.

In addition, numerous state and local governments have provided subsidies and tax benefits totaling at least $1.5 billion, mainly from California, Nevada, and Texas.

Musk’s artificial intelligence venture, Xai, received a $200 million Department of Defense contract to develop AI technology for both defense and scientific purposes earlier this month.

The relationship between Musk and Trump has deteriorated since the Tesla CEO publicly criticized Trump’s sweeping tax and spending law, which he labeled “nasty and hateful,” cautioning that it would worsen the national debt.

Last month, Trump expressed frustration and suggested reevaluating government contracts with Musk’s companies.

In a further twist, Musk made a reference to Trump’s alleged connections to the Jeffrey Epstein case in his social media posts.

The exchanges escalated, leading Trump to question Musk’s character and even alluding to the possibility of Musk starting a new political party.