The public feud between former President Donald Trump and Tesla CEO Elon Musk intensifies as recent comments from Trump label Musk as having “lost his mind.” This fallout comes after a year of intertwined business and political collaborations between the two giants, which observers didn't foresee unraveling so quickly or dramatically. Reports indicate a planned phone call on Friday never took place, and Trump is now contemplating selling the Tesla he bought from Musk's company earlier this year.
The rift arises against a backdrop of significant political contributions from Musk amounting to $290 million to Trump and other Republicans, a sum they may deeply miss in the approaching midterm elections. Tensions escalated as Musk, feeling unappreciated, hinted he may redirect his contributions toward efforts opposing Trump, adding further uncertainty to their already tenuous alliance.
Both Musk and Trump have extensive ties to the U.S. government through contracts and projects. Musk's companies, particularly SpaceX, have received large government contracts totaling over $20 billion. Trump seems to recognize this leverage, recently suggesting on Truth Social that government subsidies for Musk should be reconsidered. Despite Musk threatening to decommission a critical astronaut transport service in retaliation, legal complexities in canceling contracts suggest that government ties will persist for now.
Additionally, alliances remain in gray areas as employees and advisers in their circles navigate the rift. Musk's role in establishing the Department of Government Efficiency positioned him close to Trump’s administration, with many staff members linked to both entities. Key figures like Katie Miller, who previously worked with Trump, are now aligning with Musk, indicating that the fallout could have broader implications for both political and corporate landscapes.
Alongside this, surveys are illustrating public sentiment, with a majority of Republican voters siding with Trump, suggesting that Musk's popularity among this demographic may be waning. As both figures continue to engage in public exchanges, the long-term effects of their feud could reverberate across the political and business sectors in the U.S. The question remains whether this will culminate in a definitive break or lead to a recalibration of their relationship amidst mutual dependencies in various domains.
