The dynamic between the world’s most influential political figure and its wealthiest entrepreneur underwent a dramatic shift on Wednesday, following a high-intensity verbal clash that left capitals and financial centres reeling. Breaking the ice early on Wednesday, Elon Musk penned on a digital platform, ‘I ought to take back some of what I said about President @realDonaldTrump last week. The comments crossed the line.’ Equally, Trump offered a soft response during a New York Post podcast interview unveiled on Wednesday, stating, ‘Mistakes do happen. I have no ill will towards him.’ This exhibited Musk’s most indicative remorse yet, regarding his turbulent disengagement with Trump, shortly after a meeting with two of the president’s strongest supporters.
JD Vance, the Vice President and Susie Wiles, the chief of staff at the White House, held a meeting with Musk the previous Friday, urging him to resolve his disaccord with Trump, according to those privy to the dialogue. The Wall Street Journal first broke the story about the meeting. Until their very public split last week, Musk had shared a close relationship with Trump, providing advice and guidance, which caused a whirlwind stirred by the event for both the president and the world’s wealthiest man.
The bone of contention originates from Musk’s disagreement with Trump’s tax-cut proposal in Congress. The president suggested retaliating by depriving Musk of his government contracts, a move that would potentially harm Musk’s rocket company, SpaceX. Although Trump did not reveal details, he appreciated Musk’s subsequent contrition during a brief interaction with the New York Post, leaving room for negotiation when asked whether he would let go of the dispute entirely.
For Trump, the conflict with Musk was a diversion in his efforts to pass a colossal tax bill, mediate peace in two international confrontations, and handle protests in the United States’ second-largest city. On last Thursday, shareholders reacted to the feud with a massive sale off of Tesla, Musk’s electric vehicle company, stocks. This move reduced the company’s market cap by $150 billion after shares dipped by over 14%. Despite this considerable setback, Tesla’s stocks bounced back slightly following a few days of trading but plateaued on Wednesday.
Musk was the first to dissipate what had escalated into a contentious verbal joust, heeding online advice to reduce tension as the situation deviated from its course rapidly. Musk had previously irked Trump by appropriating his electoral win, advocating his impeachment, and even implying that the president was involved in the alleged sexual misconduct of Jeffrey Epstein. It is still yet to be seen whether Musk’s expression of remorse will heal the wounds caused in his relationship with Trump.
The president, known for his retentive memory for grudges, may certainly hold Musk in a precarious position, considering many of Musk’s business ventures are subject to federal regulatory oversight, and SpaceX holds a substantial amount of federal contracts. However, when asked, Trump merely expressed his remembrance of their once cordial relationship, saying he ‘wishes him well,’ without any indication of if he seeks reconciliation.
Given the magnitude of the rupture in their relationship, skepticism abounds whether Trump and Musk will ever reclaim their close friendship. During the early periods of Trump’s second term, Musk was a nearly constant presence in the White House. Under Trump’s administration, Musk chaired an entity known as the Department of Government Efficiency, tasked with reducing expenditures, closing down agencies, and shrinking the federal workforce.
Despite the department’s lofty goal of netting the government savings of $1 trillion, they fell drastically short, raking in a meager savings of $180 billion by its own unverified calculations. Even this figure is likely to be engulfed by Trump’s tax proposal projected to inflate the government’s budget deficits by $2.4 trillion over the next decade, as per estimates by the apolitical Congressional Budget Office. This prompted Musk’s opposition to the bill, condemning it as a ‘gross monstrosity.’