The US President, Donald Trump, has no interest in engaging with his former ally, Elon Musk, amidst a contentious dispute regarding the president’s substantial tax-cut bill, according to a White House official, who confirmed that no conversation between the two is scheduled for the day.
An earlier statement from a different White House official had indicated that Mr. Trump and Mr. Musk were set to have a discussion today.
“I’m not even thinking about Elon. He’s got a problem; the poor guy’s got a problem,” Mr. Trump expressed to CNN this morning.
In an unprecedented display of hostility over social media, Mr. Trump, the world’s most influential leader, and Mr. Musk, the world’s wealthiest individual, exchanged heated remarks yesterday, signaling a significant breakdown in their previous alliance.
At the start of today’s market, shares of Mr. Musk’s Tesla climbed by 4.5%.
In contrast, during yesterday’s trading session, the stock plummeted by 14%, erasing approximately $150 billion in value—the most significant single-day drop in the electric vehicle manufacturer’s history.
Mr. Musk had financially supported a significant portion of Mr. Trump’s presidential campaign and was subsequently invited to the White House to lead a controversial initiative aimed at reducing the federal workforce and cutting expenditures.
The rift began to surface days ago after Mr. Musk, who stepped down from his role as head of the Department of Government Efficiency one week ago, criticized Mr. Trump’s tax-cut and spending proposal.
This conflict is complicating efforts to pass the bill, which is a primary objective for the Republican-majority Congress and the president.
Elon Musk has alleged, without providing evidence, that Donald Trump is ‘in the Epstein files.’
Mr. Musk condemned the legislative package, labeling it a “disgusting abomination” that would contribute excessively to the nation’s $36.2 trillion debt.
The package narrowly passed the House of Representatives last month and is now awaiting consideration in the Senate, where Republicans claim they will make additional modifications.
Nonpartisan analysts project that it would increase the debt by $2.4 trillion over the next decade.
House Speaker Mike Johnson mentioned that he has been communicating with Mr. Musk.
“I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to create legislation and pass it,” he stated on CNBC.
Read More: Musk criticizes Trump’s mega-bill, pivotal moments from Musk’s short-lived advisory role.
Initially, Mr. Trump maintained silence while Mr. Musk campaigned against the bill but expressed his disappointment publicly yesterday, stating he was “very disappointed” in Mr. Musk.
“Look, Elon and I had a great relationship. I don’t know if we will anymore,” he remarked. The two then exchanged critical comments on their respective social media platforms: Mr. Trump’s Truth Social and Mr. Musk’s X.
“Without me, Trump would have lost the election,” wrote Mr. Musk, who invested nearly $300 million supporting Mr. Trump and other Republican candidates in the previous election.
“Time to drop the really big bomb: (Trump) is in the Epstein files,” Mr. Musk posted on X, adding, “That is the real reason they have not been made public.”
He did not clarify which files he referenced nor provided any evidence for his statement.
Moreover, Mr. Musk claimed that Mr. Trump’s signature import tariffs could lead the US into a recession and responded affirmatively to a post on X suggesting Mr. Trump should face impeachment.
However, that prospect seems highly unlikely given that Mr. Trump’s party holds majorities in both legislative chambers.
Mr. Trump hinted that he would consider terminating government contracts with Mr. Musk’s companies, including rocket firm SpaceX and its satellite division, Starlink.
In response, Mr. Musk indicated he would commence decommissioning SpaceX’s Dragon spacecraft, the only US vehicle capable of transporting astronauts to the International Space Station.
Later in the day, he retracted this threat.
Tesla finished down 14.3%, losing around $150 billion (€131.1 billion) in market value.
In a potential sign of reconciliation, Mr. Musk later replied, “You’re not wrong,” to billionaire investor Bill Ackman’s suggestion that Mr. Trump and Mr. Musk should reconcile.
A protracted dispute between the two could hinder Republicans’ efforts to maintain control of Congress in the upcoming midterm elections, especially if Mr. Musk withholds financial support or if other prominent Silicon Valley leaders distance themselves from Mr. Trump.
Mr. Musk previously announced plans to reduce his political contributions and called for “all politicians who betrayed the American people” to be dismissed next year.
His association with the Trump administration has incited widespread protests at Tesla locations, negatively impacting sales, as investors worried that Mr. Musk’s focus was too scattered.
