Trump and Musk’s Strained Ties Deepen Amid Policy Rift

The relationship between former allies Donald Trump and Elon Musk has turned icy, as tensions over policy disagreements escalate into public confrontations. On June 6, U.S. President Donald Trump told reporters aboard Air Force One that he has no plans to communicate with Musk, the billionaire entrepreneur behind Tesla and SpaceX. ‘I’m not thinking about him,’ Trump remarked, adding, ‘I hope he does well with Tesla.’

A Clash Over Tax Policy

The fallout began with Musk’s sharp criticism of a Republican tax and spending bill, a cornerstone of Trump’s domestic agenda. Musk, on his social media platform X, lambasted the legislation, calling it a ‘disgusting abomination’ that would add $2.4 trillion to the national debt over the next decade, according to nonpartisan analysts. On June 5, he publicly supported posts accusing Trump of personal attacks, declaring that it was time for a new political party to represent moderates in the United States.

Trump responded the same day, expressing ‘disappointment’ in Musk. The feud marked a dramatic shift from their recent collaboration; only a week earlier, Trump had celebrated Musk’s contributions to the Department of Government Efficiency. However, Musk’s efforts to slash $2 trillion in federal spending fell short, achieving only a modest reduction of 0.5%. This failure reportedly fueled Musk’s frustration with Trump’s leadership.

Federal Contracts Under Scrutiny

Trump has hinted at retaliatory measures against Musk’s businesses, which rely heavily on government contracts. On June 6, he announced plans to review these agreements, stating, ‘We’ll take a look at everything. It’s a lot of money.’ Musk’s companies, including SpaceX and its satellite arm Starlink, play critical roles in national security and space exploration. However, the White House has not clarified whether specific contracts are at risk.

Adding to the drama, Trump may part ways with a red Tesla Model S he purchased in March after showcasing the electric car on the White House lawn. A White House official, speaking anonymously, suggested this move would symbolize the President’s disapproval of Musk.

Economic and Political Fallout

The feud has sent ripples through financial markets and political circles. On June 5, Tesla’s stock plummeted 14%, wiping out $150 billion in value—the largest single-day loss in the company’s history. Although the stock regained some ground the following day, investors remain wary of Musk’s divided focus between business and political activism.

Politically, the rift poses challenges for the Republican Party. Musk was a significant donor to Trump’s 2024 presidential campaign and had pledged financial support for conservative candidates. However, his recent criticisms and threats to reduce political spending could weaken Republican efforts to maintain control of Congress in upcoming elections.

The Road Ahead

Despite the heated exchanges, some believe reconciliation is possible. Sources close to Musk suggest his anger is subsiding, and he may seek to mend ties with Trump. House Speaker Mike Johnson, who has been in contact with Musk, expressed hope for a resolution. ‘I don’t argue with him about rockets, and I wish he wouldn’t argue with me about legislation,’ Johnson stated during a CNBC interview on June 6.

For now, the feud highlights the fragility of political and business alliances, especially when conflicting visions for economic policy come into play. As both leaders navigate the fallout, the broader implications for U.S. governance and innovation remain uncertain.

The unfolding drama between Trump and Musk underscores the complexity of mixing politics with business. As the situation evolves, its impact on policy, markets, and upcoming elections will be closely watched.