Donald Trump denied that he was looking to ruin the business empire of his former ally Elon Musk as compensation for his dispute on the emblematic tax law of the US President.
“Everyone affirms that I will destroy Elon’s companies by removing some, if not all, the large -scale subsidies he receives from the US government. It is not like that! I want Elon and all the companies in our country to prosper”Trump published Thursday on social networks, although it was not clear to what comments he answered.
“The better they do, the better he will go to the United States, and that benefits us all. We are beating records every day, and I want him to continue like this!” The president added. The actions of Tesla Inc. closed with a decrease of 8.2% in New York on Thursday after the company reported a strong fall in income and Musk warned about difficult times for its manufacturer of electric vehicles. The shares have fallen more than 24% this year until Thursday.
“The ‘subsidies’ of those who speak simply do not exist, “Musk said in an X post on Thursday. “DJT has already eliminated or put expiration date to all support for sustainable energy, while the enormous subsidies to oil and gas have left intact.”
The comments mark the last turn in the tumultuous relationship between two of the most powerful figures in the world, after a distancing that led Musk to launch a shower of attacks against Trump already raised the creation of a new political party. In response, The US president threatened to terminate Musk’s government contracts and subsidies.
Both men later tried to amend the situation, but the damage was done to the commercial interests of Musk. In a quarterly results report on Wednesday, Tesla cited the loss of subsidies for electric vehicles and the increase in tariffsboth Trump policies, as two obstacles to their car manufacturing and energy manufacturing businesses.
Musk warned Wednesday that the electric vehicle manufacturer would be transition during the next year after losing tax incentives in the United States and need time to launch autonomous vehicles.
“We probably have some difficult quarters,” Musk said. Tesla’s financial director, Vaibhav Taneja, also said on Wednesday that Trump’s tax package has “certain adverse impacts” on his energy business, especially in residential storage due to the anticipated expiration of fiscal credits to the consumer.
“Therefore, the challenges of the storage business persist both in the invoice and in the rates, and we are doing everything possible to try to overcome them. However, We will see changes in demand and profitability”, Taneja declared at a telephone conference on results.
Tariffs increased costs by around US $ 300 million for automotive businesses And of the company’s energy in the second quarter, Taneja added, and the costs are expected to increase in the next quarters.
In May, Musk left his position in the government, in which he supervised the Trump government cost reduction initiativeto return to their companies, which have many links with the United States government.
Spacex is a key government contractor, both for the National Aeronautics and Space Administration and for the US Army. Tesla, which represents most of Musk’s fortune, has benefited from a fiscal credit of US $ 7,500 for electric vehicle buyersas well as the sale of regulatory credits that rival automobile manufacturers acquire to comply with federal standards of exhaust emissions and fuel savings.
Trump’s fiscal package, promulgated on July 4, undermined both support mechanisms. Eliminated the civil sanctions that car manufacturers had to pay to US regulators who supervise the fuel savings requirements.
During the dispute, Musk threatened to dismantle Spacex’s Dragon spacecraft, a vital capsule that NASA uses to send astronauts and supplies to the International Space Station. Later Musk retracted from his threat and Spacex continues to launch Dragon vehicles.
In his last publication on Thursday, Musk clarified that “Spacex won NASA’s contracts doing a better job for less money”
The dispute between Trump and Musk became intensely personal at its peak, when the richest man in the world published (and then erased) an X statement that Trump’s name appeared in files related to the deceased and dishonored sex and sexual offender Jeffrey Epstein and that the White House had undercover it.
These accusations have acquired a new meaning now that Trump has been involved in a controversy about its management of Epstein documentswhich has caused the anger of some of his own supporters who say that the president’s team has breached his promise of transparency.
A committee from the House of Representatives led by Republicans cited Ghislaine Maxwell, an convicta complicit of Epstein, to testify next month, while the Wall Street Journal reported that Attorney General Pam Bondi “He informed the president at a meeting at the White House that his name was in the Epstein archives “along with” many other high profile figures“
“This is nothing more than a continuation of the false news invented by the Democrats and the liberal media”Said White House communications, Steven Cheung, in a statement in response to the Journal report.
