Trump Declares No Plans to Reconcile with Elon Musk
U.S. President Donald Trump announced he has no intention of speaking with Elon Musk anytime soon, highlighting ongoing tensions between the two over a significant Republican tax and spending bill. Speaking from Air Force One en route to New Jersey, Trump said he was not "thinking about" the Tesla and SpaceX CEO, adding, "I hope he does well with Tesla."
Despite this, the President indicated an upcoming review of Musk's extensive government contracts, noting, "We'll take a look at everything. It's a lot of money." An anonymous White House official revealed Trump might discontinue using the red Tesla Model S he purchased in March.
Musk Criticizes Republican Tax Bill, Calls for New Political Party
Elon Musk, while not addressing Trump directly, continued his public criticism of the sweeping tax and spending legislation that forms much of Trump’s agenda. On his social media platform X, Musk shared opinions stating the bill could financially damage Republicans and increase the $36.2 trillion national debt. Responding to a post pointing out his criticism of Congress and Trump’s subsequent personal critiques, Musk replied, "exactly."
Moreover, Musk expressed a desire to establish a new U.S. political party to represent the "80% in the middle." Sources close to Musk suggest that while his anger has waned, he might seek reconciliation with Trump eventually.
Recent Market Impact and Political Fallout
The feud between Musk and Trump intensified public scrutiny following an unusual verbal clash. Tesla's stock rebounded slightly from a prior 14% drop—the largest single-day decline in the company’s history, which resulted in a $150 billion loss.
Investor James Fishback, a Musk associate, publicly urged Musk to apologize, citing President Trump's "grace and patience" despite Musk’s disappointing conduct.
Background on Collaboration and Dispute
- Musk, the world’s richest individual, heavily funded Trump’s 2024 presidential campaign.
- Trump appointed Musk to lead efforts aimed at reducing federal workforce and spending.
- Musk’s cuts during his tenure totaled only a fraction of the ambitious $2 trillion budget reduction he initially promised.
- Since then, Musk denounced Trump’s tax bill as "right-wing social spending," complicating its passage amid a slim Republican majority in Congress.
Legislative Progress and Internal GOP Dynamics
The tax and spending measure narrowly cleared the House last month and is under Senate consideration, with Republicans planning amendments. Critics warn it could add $2.4 trillion to the national debt over ten years.
House Speaker Mike Johnson revealed ongoing communication with Musk, expressing hope for a swift resolution. He commented on Musk’s expertise in areas like aerospace but encouraged diplomacy concerning legislative matters.
Escalation and Threats to Government Contracts
Initially silent as Musk opposed the bill, Trump publicly expressed being "very disappointed" with Musk’s stance. Musk, who invested nearly $300 million in previous elections, suggested Trump would not have won without his backing and remarked that Trump should face impeachment.
Trump threatened to terminate government contracts with Musk’s companies, including SpaceX and the Starlink satellite project. Musk then ominously suggested retiring the SpaceX Dragon spacecraft, the sole U.S. vessel capable of transporting astronauts to the International Space Station, though he later retracted the statement.
Personnel Disputes and Political Ramifications
Musk's displeasure deepened after Trump reportedly blocked the appointment of Musk ally Jared Isaacman to lead the National Aeronautics and Space Administration (NASA), with involvement from White House personnel director Sergio Gor, who has had a contentious relationship with Musk.
This ongoing discord raises concerns about potential impacts on Republican cohesion and influence, especially with midterm elections approaching. Musk has indicated plans to reduce political donations and has condemned politicians he perceives as betraying the American public.
Public Reaction and Corporate Impact
Musk’s involvement in Trump’s administration has sparked protests at Tesla factories, negatively affecting sales and raising investor concerns about Musk’s divided focus.
