Once allies, Donald Trump and Elon Musk now find themselves in a fierce public dispute that has escalated rapidly. Their camaraderie, which included attending events and giving mutual praise, has seemingly come to an abrupt end.
The conflict erupted as Trump retaliated against Musk’s criticism of his financial policies, specifically a Republican tax-cut bill. This led to a heated exchange on online platforms, particularly Trump’s Truth Social and Musk’s X, attracting comments from various business leaders, analysts, and political figures.
Calls for Reconciliation
Billionaire investor Bill Ackman publicly urged both Trump and Musk on X to cease their rivalry, emphasizing that harmony between them would be beneficial for the nation. “We are much stronger together than apart,” Ackman stated, to which Musk responded with a conciliatory, “You’re not wrong.”
U.S. Congressman Jim Jordan expressed hope for reconciliation while defending the budget bill during an interview on Finance Newso News. However, not all voices in Trump’s circle are advocating for peace. Former senior advisor Steve Bannon took a more aggressive stance, suggesting on his show that Trump ought to issue an executive order to nationalize SpaceX under the Defense Production Act, claiming, “The U.S. government should seize it.”
Bannon also called for Musk to be stripped of his security clearance and for an immediate suspension of federal contracts with Musk’s companies pending an investigation.
Investor Mark Cuban appeared to support Musk’s idea of forming a new political party in America, aimed at representing the centrist majority. Former presidential candidate Andrew Yang also endorsed this notion, proposing an “Independent ’28 presidential primary” featuring notable figures such as Cuban, Jamie Dimon, and actor Matthew McConaughey.
Political analyst Ian Bremmer commented that while Trump holds more power than Musk, he lacks the requisite competence, highlighting the imbalance in their public feud.
Impact on Tesla
Dan Ives from Wedbush remarked that the situation has created significant anxiety among investors, noting that the Musk-Trump rivalry has intensified fears regarding Tesla’s future regulatory bearings under a Trump administration focused on autonomous vehicles. Despite this, Ives maintained a positive outlook on Tesla, suggesting the conflict was merely a complication in the larger picture.
Conversely, Ross Gerber, a prominent Tesla supporter, criticized Musk, asserting on X that Musk’s actions were undermining those who had helped elevate him to power. He warned of dire consequences for shareholders, referring to a situation where Trump was purportedly returning a Tesla vehicle due to dissatisfaction, stating, “All this can’t be good for shareholders. But hey, who cares about us.”
Gary Black, managing director of Future Fund, stated his firm had divested from Tesla shares, predicting that the feud will continue to exert pressure on the stock, particularly challenging the optimism of bullish investors who had previously believed in the synergy between Musk and Trump.
Lastly, David Rosenberg, of Rosenberg Research, voiced his concerns that Musk’s leadership at SpaceX is crucial for U.S. dominance in space technology, warning that ongoing tensions could jeopardize political support for related funding initiatives.
