Overview

• President Trump used a Truth Social post to deny plans to dismantle Elon Musk’s companies and said he wants them to thrive.
• Press Secretary Karoline Leavitt told reporters she “doesn’t think” Trump supports federal agencies contracting with Musk’s AI company xAI.
• xAI’s existing contract of up to $200 million with the Department of Defense remains in place as it markets its Grok for Government tools.
• Elon Musk cautioned investors that Tesla could face “a few rough quarters” once the $7,500 electric vehicle tax credit expires on September 30 under the One Big Beautiful Bill.
• The exchange underscores broader disputes over Trump’s deficit-increasing spending legislation and the future of billions in dollars of federal support for SpaceX, Tesla and xAI.