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Elon Musk Apologizes to Donald Trump After Threat of Contract Retaliation

Elon Musk Apologizes to Donald Trump After Threat of Contract Retaliation

Following a public spat, Tesla CEO Elon Musk apologized for his recent social media posts criticizing former US President Donald Trump, after Trump threatened to withdraw government contracts and subsidies.

Trump-Elon: Recent social media tensions between former US President Donald Trump and Tesla CEO Elon Musk appear to be easing. Musk issued an apology on X (formerly Twitter) for some of his comments from the previous week, admitting that he had gone too far. This follows Trump publicly declaring an end to their relationship.

The Beginning of the Dispute

Tensions escalated when Musk resigned from a Department of Government Efficiency (DOGE) position and publicly criticized Trump's proposed "One Big Beautiful Bill," which includes tax cuts and government spending. Musk stated he hadn't been informed about the bill's details beforehand, contradicting Trump's claim that he had, particularly regarding proposed cuts to electric vehicle (EV) subsidies.

Musk's Social Media Attacks

Musk posted several pointed criticisms of Trump on X. Beyond criticizing the bill, he briefly endorsed Trump's impeachment in a since-deleted post. The conflict intensified when Musk commented on Trump's past connections with controversial financier Jeffrey Epstein, prompting Trump to dismiss it as a "false and old issue."

Trump's Threat Regarding Government Subsidies and Contracts

Angered by Musk's statements, Trump hinted that government subsidies and contracts for Musk's companies could be terminated if their behavior didn't change. He specifically mentioned considering action against SpaceX. In an interview with NBC News, he stated that Musk was now a "sad and disappointed person" and that their relationship was over.

Trump's Warning: Don't Fund Democrats, Musk

Trump warned Musk against funding Democratic candidates, particularly those opposing the tax bill, threatening unspecified consequences.

Musk's Underlying Grievances with Trump

Trump's "One Big Beautiful Bill" proposes eliminating tax credits for electric vehicles. The Biden administration offered a $7,500 tax credit for new EV purchases, a credit Trump's administration seeks to eliminate. The bill would deny credits to companies that sold over 200,000 EVs between 2009 and 2025 – directly impacting Tesla, which has already surpassed this threshold.

Dispute Over NASA Appointments

Another source of Musk's discontent stems from a NASA appointment. Musk advocated for Jared Isaacman, a close associate and commander of a SpaceX mission, to be appointed NASA administrator. The Trump administration rejected this recommendation, a decision Musk believed would have fostered better collaboration between NASA and SpaceX.

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