Trump Denies Plans to Cut Musk’s Federal Subsidies

On July 24, former President Donald Trump clarified on Truth Social that he will not cancel federal subsidies for Elon Musk’s companies, emphasizing their success benefits the U.S. economy.

The statement responded to market concerns about subsidy withdrawal, affecting Tesla’s stock amid decreasing earnings. The potential policy maintains significance for tech-related markets and cryptocurrency sectors.

Trump Debunks Subsidy Cut Rumors Amid Tesla Volatility

On July 24, President Donald Trump took to Truth Social to correct misrepresentations about his administration’s plans regarding federal subsidies for Elon Musk’s companies. Trump emphasized that Musk and other U.S. businesses should continue thriving to benefit the national economy.

Despite Trump’s reassurance, concerns remain about any potential changes in policy. Tesla’s financial performance raised alarms after announcing a notable downturn in Q2 profits, causing a 9% drop in stock prices. The proximity of Trump’s statement to Tesla’s struggles contributed to the apprehension.

Donald Trump, President, United States, “Everyone is stating that I will destroy Elon’s companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government. This is not so I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!”

Market reactions remain cautious. Investors viewed Trump’s comments cautiously, despite reassurances. Statements from key figures such as Tesla CFO Vaibhav Taneja highlight the urgency to avail of existing EV tax credits before their expiration, demonstrating continued concern.

Subsidy Politics May Affect Tech and Crypto Markets

Did you know? Tesla and GM previously faced similar tax credit expirations, impacting sales and causing market volatility.

Bitcoin (BTC) is trading at $118,632.91, with a market cap of approximately $2.36 trillion and a dominance of 60.83%. Over the last 90 days, BTC has appreciated by 25.27%. According to CoinMarketCap, trading volume in the past 24 hours reached $72.22 billion, reflecting an 8.30% change.

According to Coincu’s research, the evolving dynamics of federal subsidies under U.S. political regimes may shape regulatory landscapes substantially. Historical data indicates tech and crypto sectors could experience increased volatility amid such political developments, underscoring the need for strategic foresight.