Trump Threatens to Cut Off Billions in Federal Funding to Elon Musk’s Companies

Former President Donald Trump has intensified his feud with Elon Musk, publicly threatening to end government subsidies and contracts with Musk’s companies, including SpaceX and Tesla.

“The easiest way to save money in our Budget… is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted Thursday on Truth Social. “I was always surprised that Biden didn’t do it.”

Estimates suggest Musk’s companies have received up to $38 billion in federal support, with $22 billion linked to SpaceX alone. SpaceX is currently NASA’s main partner for transporting astronauts and cargo to the International Space Station. It’s also developing vehicles for de-orbiting the ISS and future lunar missions.

In response to Trump’s threat, Musk announced that SpaceX will begin “decommissioning” its Dragon spacecraft, potentially jeopardizing key NASA missions.

Tesla, meanwhile, has benefited from roughly $11.4 billion in regulatory credits promoting electric vehicles. Musk claims Tesla no longer relies on these subsidies.

The conflict between Trump and Musk exploded after Musk criticized a Republican-backed policy bill, calling it a “disgusting abomination.” Trump, reportedly angered by Musk’s public rebuke, responded with the threat to cut ties.

Tesla’s stock plunged as much as 15% on Thursday following Trump’s post, compounding a 25% year-to-date decline. SpaceX, a private company, is not publicly traded.

The feud comes at a sensitive time for Musk’s businesses, as Trump’s comments also raised the possibility of renewed government investigations into the companies. Some probes had been paused or dismissed during Trump’s last administration.

NASA responded to the turmoil with a statement affirming it would continue working with its partners to fulfill the President’s space agenda.