Trump vs. Musk: The Clash Over Federal Subsidies

President Donald Trump assured on Thursday that he has no intention of dismantling Elon Musk's companies by removing federal subsidies. Trump's statement aimed to clarify rumors suggesting potential harm to Musk's enterprises, stating his desire for the billionaire's businesses to thrive in the U.S. economy.

The dialogue follows a heated disagreement with Musk in June, where the latter criticized Trump's tax policies as potentially disastrous for America. In response, Trump took to social media to debunk the notion of retracting large-scale subsidies, highlighting his continued support for the technology innovator.

As government reductions in support for electric vehicles loom, Musk's Tesla faces predicted financial challenges. Despite Musk's general opposition to subsidies, Tesla has historically benefitted from significant tax credits owing to its clean energy focus. Meanwhile, tensions persist as the administration explores alternatives to Musk's SpaceX for defense projects, amid concerns over federal contracts.

(With inputs from agencies.)