Trashing Each Other: The Dangerous Brawl Between Trump and Musk for America
- 3 Min
- Controversial Exchange Between Trump and Musk resulting in Mutual Damage
Millionaire Elon Musk might soon find himself off the list of White House galas. His beef with President Donald Trump has been the soup du jour in the US for days now. If these two heavyweights don't make peace soon, their public smackdown could wreak havoc for both.
On one end, there's Trump: a president with an unparalleled readiness to wield political power against his foes. On the other, Musk: the world's wealthiest man, whose influential business ventures carry considerable weight for the US economy and aerospace sector.
As Chaim Siegel, chief analyst at New York's Elazar Advisors, puts it, "Never have I witnessed two individuals of such caliber brawl this viciously." Yet, the media can't get enough of the "royal rumble," as Siegel humorously refers to it.
Stakes for Trump and Musk
Trump's team is growing anxious. They're worried the chaotic break with Musk could tarnish Trump's legacy, dent the Republican Party's chances in the looming midterm elections for Congress in November 2026, and jeopardize the government's relations with Silicon Valley bosses. After all, Musk commands X, Trump's primary MAGA (Make America Great Again) movement amplifier.
Musk also stands to lose. Trump's threats to strip Tesla, Musk's faltering electric car company, of lucrative subsidies and government contracts could potentially drive it bankrupt. Moreover, SpaceX, Musk's space company, stands to lose $22 billion (approximately €19 billion) in public funding if things go sour.
The catalyst for the clash was Musk's displeasure over Trump's budget proposal, which the Senate is yet to approve. The "elevator pitch," as the president calls it, aims to extend tax cuts for the wealthy. Musk recently criticized these plans, claiming they'd propel the national debt to an all-time high and bankrupt the country. Trump then labeled Musk "cuckoo."
No-holds-barred Brawl
The dispute has blown the lid off the fragile alliance between Trump's right-wing populist MAGA movement and the tech-friendly moguls advocating for Musk. Trump's former advisor Steve Bannon is calling for Musk's deportation, while reports of Musk's alleged drug use have surfaced in the media. To add fuel to the fire, Musk once even backed a pro-impeachment campaign initiated on X, Trump's social media network.
Republican members of Congress are urging a ceasefire between Musk and Trump, with Mike Johnson, the House speaker, telling CNBC, "I hope it gets resolved soon, for the sake of the country."
Musk Moots a New Political Party
Trump's party is bracing for a financial hit. Musk came onboard the MAGA movement a year ago and financed Trump's campaign with an estimated $280 million. In return, Trump appointed Musk as a special advisor and tasked him with significant government downsizing, which sparked cross-party criticism. Musk resigned from the advisory role at the end of May.
For the 2026 midterm elections, Musk has pledged another $100 million. Now, it's unclear whether this money will ever be disbursed. In an apparent vote of no confidence against Trump, Musk queried his X followers, "Is it time to establish a new political party in America that genuinely represents the middle?", with over 80% of respondents voting yes.
- Donald Trump
- Elon Musk
- US President
- USA
Insights
The ongoing public battle between Musk and Trump could lead to several undesirable consequences for both parties within the US political landscape, depending on the escalation and actions taken by each party.
Potential Negative Consequences
For Donald Trump
- Political Capital and Support: Public squabbles with powerful figures like Musk could turn off certain voting blocs, such as tech entrepreneurs and younger, progressive conservatives who view Musk as an icon of innovation. Trump risks appearing petty or unstable should he leverage the powers of his office to punish critics, which could chip away at broader support and party unity.
- Policy Challenges: Trump's threats to terminate or limit federal contracts with Musk's companies, such as Tesla and SpaceX, could complicate important government operations, especially for defense, space, or technology projects. This could also make future negotiations with contractors more complicated and trigger criticism from business leaders and political opponents.
- Legal and Ethical Scrutiny: Actions seen as retribution, like revoking contracts or launching investigations solely aimed at Musk, could attract legal challenges and allegations of abuse of power, potentially leading to congressional hearings or even impeachment discussions if deemed politically motivated.
For Elon Musk
- Subsidy and Contract Threats: As a major federal contractor, Musk's businesses (Tesla, SpaceX, Neuralink, et al.) are particularly susceptible to government decisions. Trump's threats to revoke subsidies and terminate contracts could result in significant financial losses and operational setbacks, as seen when Tesla's stock dropped sharply following Trump's comments.
- Reputation Damage: Musk could lose standing with key constituencies if he aligns publicly with Democrats, facing backlash from Trump-aligned groups, including negative press coverage and potential boycotts of his businesses.
- Regulatory Scrutiny and Legal Battle: Allies of Trump have already called for investigations into Musk's background and business practices, which could lead to increased regulatory scrutiny, legal battles, and reputational harm, even if the accusations are groundless.
- In the current political landscape of the USA, Elon Musk, the world's wealthiest entrepreneur, is facing potential exclusion from White House galas due to his ongoing feud with President Donald Trump.
- Financial analyst Chaim Siegel, from New York's Elazar Advisors, has commented on the intensity of the conflict, stating he has never witnessed such vicious brawling between individuals of such high caliber.
- The dispute between Trump and Musk has significant implications for both parties, with Trump's team concerned about potentially damaging his legacy, the Republican Party's chances in the upcoming midterm elections, and relations with Silicon Valley execs.
- For Musk, Trump's threats to withdraw subsidies and government contracts could potentially drive Tesla, Musk's electric car company, into bankruptcy, and jeopardize SpaceX's $22 billion in public funding.
- The feud has widened the rift between Trump's right-wing populist MAGA movement and tech-friendly moguls, with Trump's former advisor Steve Bannon advocating for Musk's deportation and allegations of Musk's drug use surfacing in the media.
- The dispute could lead to undesirable consequences for both parties within the US political landscape, such as potential loss of political capital and support for Donald Trump, policy challenges, legal and ethical scrutiny, subsidy and contract threats, reputation damage, and regulatory scrutiny for Elon Musk.
