In a deepening public feud, Elon Musk has fired back at President Donald Trump’s assertion that his companies will continue to enjoy federal subsidies, with the tech billionaire stating unequivocally that these incentives have already been scrapped.

Musk insisted that his companies are not receiving any special government subsidies, as he appeared to dismiss the chance for a potential detente in his feud with Trump.

President Trump said Thursday he has no interest in stripping Elon Musk-owned companies of billions in federal money — adding that he wants the former “first buddy” to “thrive.” “Everyone is stating that I will destroy Elon’s companies by taking away some,

Elon Musk was referring to an earlier post by Donald Trump on Truth Social, which claimed that he wanted the Tesla CEO to “THRIVE”.

What is going on in the feud? - From feuding to friends to feuding again, the relationship between the two billionaires has been turbulent, to say the least.

Donald Trump made it clear on Thursday that he won’t be pulling the plug on federal subsidies going to Elon Musk, even as tensions between the two remain high.

Tesla shares fell 8.2 per cent on Friday and have declined by 24.9 per cent in the past six months. “Not small, this is massive, so what is happening here is Tesla shares have basically collapsed and so have its sales,” Mr Greenwood said.

Are Elon Musk and Donald Trump friends again? A timeline of their bitter feud and fallout - Here’s a breakdown of the drama that has unfolded so far

Musk, who has been floating the idea of creating a third political party for weeks in the wake of his split with the president, reignited the push over the weekend after the passage of Trump's sweeping tax cut and spending bill -- which Musk railed against over its estimated impact adding trillions to the national debt.

About a month after President Donald Trump threatened Elon Musk’s government contracts, he has now reversed course in a message that surprised supporters and critics alike. The South African-born billionaire was an outspoken MAGA supporter and invested millions in Trump’s presidential campaign before their bitter breakup.