There were numerous tensions in the bond between Elon Musk and Donald Trump.Some of these were apparent; others were more hidden.
Their relationship was broadly seen as the most significant in contemporary US politics.
The immediate trigger for its downfall was the bill likely to be Donald Trump’s most impactful piece of legislation.
The United States faces a serious budget issue. In simple terms, the government spends more than it collects in taxes and relies on borrowing to fill the deficit. Over the decades, this borrowing has accumulated to over $36 trillion.
Elon Musk was heralded (largely by himself) as the individual poised to resolve this issue.
During last year’s election campaign, Musk was the first to propose a ‘Department of Government Efficiency’ (DOGE) during a podcast with Trump in mid-August.
Musk expressed his willingness to lead DOGE, driven by his significant concern over federal debt and the pressing need to reduce it.
The DOGE initiative aimed to apply Silicon Valley startup methods to the outdated realm of government accounting, rapidly cutting costs to help bridge the tax and spending gap.
Reducing the deficit was the strategic aim, and Trump campaigned with that vision in mind.
As long as lenders—both domestic and foreign—are willing to lend to the US government at a manageable interest rate and the economy is robust enough, borrowing to cover the shortfall for a few years should not pose a problem.
The US government bond market is the world’s largest and most liquid, so lenders do not demand high interest rates since they can withdraw their funds whenever needed and earn a reasonable return by lending to the US.
However, once confidence wavers, that $36 trillion becomes a serious issue.
This was starkly illustrated during Ireland’s financial crisis. Although the US is still far from Ireland’s financial troubles, rising interest rates will increase government bond yields, causing increasing concern among governments.
Donald Trump campaigned on the idea of reducing the budget deficit.
This is precisely what transpired in the US recently regarding the President’s tariff policy.
The disruption to trade and commerce led investors to reassess their strategies and request higher interest rates for lending to the government.
The so-called “bond market vigilantes” expressed their discontent with Trump’s tariffs, thereby putting pressure on the government in ways that regular voters cannot.
They had influenced former UK Prime Minister Liz Truss three years ago and caused turmoil among the PIIGS fifteen years ago (Portugal, Ireland, Italy, Greece, and Spain—all now performing better than the Eurozone average, if you were wondering).
Thus, Trump faced scrutiny from these vigilantes over trade.
Yet he assured voters that the tariffs would balance the government’s budget.
Trump criticized Biden for his deficit spending.
Last year, that deficit stood at 6.5% of GDP.
The Maastricht Treaty in Europe stipulates a 3% limit, and an “excessive deficit” ruling requires governments to devise a plan to return the deficit to acceptable levels within several years.
In the US, there is a debt ceiling aimed at curbing continuous deficit spending.
Occasionally—now with increasing frequency—Congress must raise the debt limit to allow the government to borrow more for daily operations.
If not, the government may face shutdowns.
This has occurred in the past.
In the previous year, there were three last-minute debt limit increases, as members of Congress opposed to borrowing engaged in brinkmanship to regain control over a surging budget.
Enter the man with a chainsaw and baseball cap. I watched from the back of a hall in a convention center hotel in National Harbour, Maryland, as Musk took the stage at the annual C-PAC gathering of conservative activists.
The chainsaw was a gift from Argentina’s President Javier Milei, who presented it to him on stage.
During that August podcast with Trump, Musk cited Milei as a model for the US, as did Trump himself.
“The new leader of Argentina is a big MAGA supporter: he ran on MAGA and has taken it to extremes, and I hear he’s doing a terrific job…they are starting to do really well,” Trump remarked.
Musk agreed, noting that Milei was cutting government spending, simplifying regulations, and implementing rational policies.
He conveyed that Argentina serves as a cautionary tale for the US—a nation that was once prosperous but has veered off course due to poor policy decisions.
Musk earnestly attempted to explain to Trump his belief that government overspending leads to inflation.
“If the government spends significantly more than it earns, that increases the money supply, and if the money supply grows faster than the rate of goods and services, that’s inflation,” he explained to a clearly disinterested Trump, who deflected to his military rebuilding efforts in his first term before eventually grasping the core message.
“It would be excellent to have a government efficiency commission examine these issues to ensure taxpayer money is spent wisely. I would gladly help on such a commission,” Musk suggested.
“I’d love it,” replied Trump, finally. “You’re the greatest cutter,” he praised Musk’s business acumen.
“You walk into a company on the brink of a strike, and you say that’s fine—you’re all out. So each of you is gone. You are the greatest.”
This marked the beginning of their camaraderie, as Musk invested his hopes in the candidate, while Trump leveraged Musk’s fame to elevate his campaign.
Additionally, Musk’s substantial financial backing—hundreds of millions of dollars—funded the Trump election campaign, including incentives for voters to register that promised a million-dollar jackpot in crucial states like Pennsylvania and Wisconsin.
Moreover, Musk’s undeniable star power—tech mogul, automaker, rocket builder, social media owner, and funder of Neuralink (a genuinely valuable company) and Starlink, the satellite internet venture—energized Trump’s rallies and media presence.
Elon Musk was and remains a rockstar of the digital age.
He attracted new, hard-to-reach voters to Trump’s rallies and their vital TV audiences, amplifying the already vibrant energy Trump radiated.
He played a crucial role in solidifying the coalition of ‘tech and crypto enthusiasts’ and the ‘manosphere’ of podcasters that pulled a notable segment of younger male voters in Trump’s direction.
In a closely contested election, this made a significant impact—potentially the turning point.
Musk had the mission, the resources, a semblance of a mandate from voters, and most importantly, permission from Trump—to attempt to cut government spending, eliminate departments, dismiss civil servants, and engage in fast, straightforward actions that many MAGA supporters yearned to see, bringing discomfort to the despised Washington DC and its Deep State inhabitants.
Thus, Musk acted quickly and disruptively, inevitably encountering resistance from actual cabinet members—those tasked with managing government departments, required to appear before Congress, and demonstrate their constitutional adherence and competency.
Read more: Trump not interested in talking to Musk, says official.
Reports of heated exchanges at cabinet meetings soon surfaced. More followed as February wore on.
Nevertheless, the cult of Elon Musk continued to flourish externally, even as the realities of DOGE emerged, attempting to dismantle the entrenched structures of the federal government and its extensive history of political deals and legal safeguards.
A revolution was underway in Washington, I asserted in early February, depicting Musk as the Robespierre of this upheaval.
This was a not-so-subtle nod to the pervasive belief in DC that Musk would not endure long in government, as his methods of cutting were deemed unsustainable.
Nor would his efforts yield sufficient savings; they would merely irritate individuals.
And irritate they did—not just cabinet secretaries, but more crucially, Donald Trump himself.
“Elon was wearing thin,” he posted on his social media platform, Truth Social.
“I asked him to step back, took away his EV (electric vehicle) mandate that compelled everyone to buy electric cars that nobody wanted (which he knew I would do!), and he just went CRAZY!”
Musk led the Department of Government Efficiency up until recently.
He followed this with another post, addressing the significant conflict of interest that had lingered over Musk’s government role: “The simplest way to save billions in our budget is to terminate Elon’s governmental subsidies and contracts. I was always surprised Biden didn’t do it.”
In a meeting with German Chancellor Friedrich Merz, who skillfully said little, except regarding Ukraine, Trump responded to a reporter’s provocation about Musk’s critique of the One Big Beautiful Bill: “I’m quite disappointed, as Elon understood this bill’s intricacies better than almost anyone present, better than you all.
“He had no issues with it. Suddenly, he developed a problem when he learned we would cut the EV mandate, which translates to billions—it’s simply unfair.
“We want cars of all kinds—electric, gasoline combustion, hybrids—everything available for sale.
“After that was curtailed, and Congress aimed to eliminate it, his attitude shifted, which I understand, but he knew every detail of this bill. He had no problem until he left.
“As for the comments he made about me, which I’m sure you can find easily—they’re fresh on tape—he once said the most wonderful things about me and hasn’t criticized me personally yet, though I’m sure that may come. I’m very disappointed in Elon. I’ve helped him greatly.”
When a reporter asked in the Oval Office if Musk had previously raised his objections regarding the tax and spend bill privately, and whether Trump’s comments were merely sour grapes, the President remarked: “No, he worked diligently and did well, and I believe he misses the place. Once he’s out, he realizes he isn’t in this remarkable Oval Office anymore; he has nice offices, but there’s something uniquely special about it.
“World War I started and ended here, as did WWII and so many other significant events. Everything grand originates within this beautiful space, which is now even more stunning than it was six months prior. Good things are occurring here.
“He isn’t the first: those who leave my administration often appreciate it. Eventually, they miss it so intensely; some embrace that feeling, while others turn hostile. I don’t know why that occurs. They leave, wake up each morning, and the glamour fades. The entire world changes, and they sometimes become antagonistic. I’d imagine you’ll write a book about it one day.”
Musk’s responses to his harsh treatment on live TV—approximately 80 posts on his social platform X showcasing the typical emotional range of a moody teenager—ranged from threats to dismantle SpaceX’s fleet of Dragon spacecraft to speculations that the Trump administration’s failure to disclose the Epstein files stems from Trump’s involvement.
Publicly available records—such as news articles, videos, and photos—indicate that Donald Trump and Jeffrey Epstein were acquainted and attended social events together, mostly during the 1980s and 90s, when Trump was eager for any publicity, even if it was just for attending an envelope opening.
These are far from being the smoking gun Musk believes them to be—they barely resemble smoke.
The feud that had been brewing for months was now visible for all to see.
The gloves had come off, igniting what was once called a Twitter feud, as the world’s richest man and the President of the United States engaged in undignified bickering for public amusement.
Never has the popcorn emoji been so extensively used on mobile devices.
In this showdown, Donald Trump emerges victorious. Elon Musk has become just another meal for the apex predator of American politics.
Like scenes in nature films where a young buck attempts to challenge the seasoned alpha and gets dismissed, Elon Musk retreats with his tail tucked between his legs.
His foray into the murky waters of DC politics concluded in pain, humiliation, and considerable financial loss.
The stock price of Tesla, Musk’s primary source of wealth, has plummeted 30% since the year’s beginning, as enough consumers responded with a boycott of the electric automaker’s products, triggering a crisis at the company that commanded Musk’s full attention to resolve.
And he needed to remain silent on the national political front.
The estimated personal loss Musk faced since joining the Trump administration approaches $27 billion. The Irish banking crisis cost €31 billion.
Once Tesla disclosed its first-quarter results, time was running out for Musk in the US government.
That’s when details about his 130-day contract, concluding at the end of May, became widely known.
He reportedly began unwinding, stepping back from government after establishing the core DOGE team (which included a remarkable 19-year-old dubbed “Big Balls”).
Both parties attempted to manage the departure with dignity and formality.
However, just after receiving his US equivalent of a P45, Musk launched a scathing critique of Trump’s One Big Beautiful Bill (OBBB), labeling it “disgusting” and “pork-filled” earlier this week.
“I’m sorry, but I can no longer tolerate it. This massive, outrageous, pork-filled Congressional spending bill is a deplorable abomination. Shame on those who supported it: you know you were wrong,” Musk asserted on X on Tuesday night.
Was the entire DOGE initiative merely a diversion, a scheme to generate the kind of chaos Trump thrives in, enabling him to push his true priorities through a system he understood far better than Musk?
Was Musk merely exploited by Trump?
Will Musk exact revenge by financing primary challengers against vulnerable Republicans in the upcoming mid-term elections?
California Democrat Ro Khanna suggested the party should welcome Musk.
Musk himself now ponders creating a third party “that genuinely represents the 80% of Americans in the middle.”
Will any of this materialize?
Who knows.
What is certain is that the OBBB continues to confront the fundamental arithmetic issue that initially surfaced.
This bill aims to make the tax cuts Trump enacted in 2017 permanent, which are currently set to expire next year.
Trump often touts them as the largest tax cut ever: if they do expire, Americans will face the largest tax hike ever. Clearly, no incumbent politician desires that tarnishing their record.
Thus, Trump must ensure those tax cuts are maintained—at a cost.
This bill, as it stands, does not provide for that expenditure.
According to the Congressional Budget Office, the bill approved by the House of Representatives and now under Senate review proposes $3.7 billion in tax cuts, countered by $1.3 trillion in suggested spending cuts. This leaves a $2.4 trillion gap in the accounts, requiring further borrowing.
Trump disputes the CBO numbers, asserting they fail to adequately consider the economic growth he anticipates will stem from extending the tax cuts and the investment generated by his ‘America First’ trade and tariff policy. He also predicts additional revenue from tariffs, although not enough to bridge the gap. However, that $2.4 trillion remains a considerable amount of hopeful value.
Musk initially expressed his aim to cut a trillion from government spending through DOGE.
The current estimates indicate that DOGE has achieved, at most, a fifth of that target, likely even less.
And now Musk has departed.
Perhaps “Big Balls” and the rest of the team can accomplish it—but again, it remains a proposition steeped in hopeful value.
Meanwhile, the bond market vigilantes remain alert, and the balanced budget advocates in the Senate are readying for a final stand. They are represented by Rand Paul and Ron Johnson.
Trump could afford to lose both yet still prevail in the Senate, where Republicans hold a 53-47 majority. Four additional Republican senators present a strong front regarding federal debt but can be swayed, and will likely be influenced by Trump—especially after he has dispatched the world’s richest man with both cunning and ruthlessness.
In this, he was aided by Steve Bannon, the godfather of MAGA, who harbors disdain for Musk and the entire Silicon Valley elite, regarding them as tech tycoons intent on robbing Americans of their wealth and freedom—especially their freedom.
Bannon has also called for an investigation into Musk’s immigration status, labeling him an illegal immigrant from Africa. He urged Trump to take control of Starlink.
MAGA likely won’t miss Musk. Nonetheless, a reconciliation shouldn’t be ruled out, especially if it aligns with Trump’s interests.
Many of Trump’s supporters are advocating for mending the rift. Former Russian President Dmitry Medvedev humorously suggested Russian mediation to resolve the discord between Trump and Musk—for a fee.
Meanwhile, all of Donald Trump’s domestic focus will be on advancing the OBBB through the Senate.
He aims for it to be ready for his signature by July 4th, of course.
