Musk Signals Openness to Reducing Tensions with Trump

Elon Musk signaled that he would seek to resolve tensions with US President Donald Trump following a public dispute that arose between them.

Previously, Musk had called for Trump to be impeached, alleging that the president was holding back documents pertinent to the disgraced financier Jeffrey Epstein, implying his own connections.

In retaliation, Trump threatened to revoke the billionaire’s government contracts after Musk’s continuous calls for Republicans to reject the president’s key tax reforms, which Musk claimed would exacerbate the national deficit.

However, mere hours after asserting he would stop using SpaceX’s Dragon spacecraft, Musk walked back his statement, hinting at a possible reconciliation with the world’s wealthiest individual.

“This back and forth is regrettable. You both are better than this. Take a breather for a few days,” suggested a social media user with only 200 followers in reply to Musk’s tweet about Dragon.

“Good advice,” Musk responded. “Alright, we won’t decommission Dragon.”

In another exchange with billionaire Bill Ackman—a shared supporter of both Trump and Musk—who proposed they “make peace for the good of our great nation,” Musk concurred, stating: “You’re not wrong.”

The contentious back-and-forth between Musk and Trump underscored a severe rift between two figures who had collaborated for months on federal policy matters.

This development left Republican lawmakers in a challenging situation, faced with choosing between Musk—a rapidly growing financial backer of the party—and Trump, a crucial political leader who has reshaped its identity.

House Speaker Mike Johnson remarked that “policy disagreements shouldn’t be personal” and referred to Musk as a friend during a media briefing on Thursday.

The strained exchange between the president and the billionaire, who significantly financed Trump’s third presidential campaign, coincided with a day that also included a phone call between Trump and Chinese President Xi Jinping aimed at restoring strained trade ties, as well as a meeting with German Chancellor Friedrich Merz about precarious US-European relations.

‘Make my day’

The clash over the GOP tax legislation devolved into personal insults when Musk accused Trump of ingratitude, asserting that the president wouldn’t have won without his backing. In retaliation, Trump threatened a key revenue stream for Musk, given that Tesla Inc. and SpaceX have benefitted from federal contracts and subsidies.

“A straightforward way to save billions in our budget is to cancel Elon’s government subsidies and contracts,” Trump posted on his social media platform.

Terminating contracts with Musk’s companies could present complications due to their extensive ties with US space and defense projects. The Dragon spacecraft is essential for ferrying crew and cargo to the International Space Station.

According to Bloomberg Government data, total revenue from federal unclassified contracts for SpaceX and Tesla since the fiscal year 2000 amounts to $22.5 billion.

“Go ahead, make my day,” Musk retorted on X in response to Trump’s threat. Later, he responded positively to a user’s suggestion to impeach Trump and replace him with Vice President JD Vance, arguing that the president’s tariffs could lead the nation into a recession by year-end. Musk also mocked Trump over the latter’s past association with Epstein.

“Time to drop a major bomb: @realDonaldTrump is in the Epstein files. That’s the actual reason they haven’t been released. Have a nice day, DJT!” he tweeted.

The White House refrained from commenting on the Epstein allegation.

Trump asserted that Musk’s opposition stemmed from a clause that would cut electric vehicle tax incentives benefiting Tesla.

“Elon was ‘wearing thin,’ and I asked him to leave; I revoked his EV Mandate that forced everyone to buy electric cars that nobody wanted (which he knew I was going to do for months!), and he just went CRAZY!” Trump posted.

Musk countered that Trump’s claim of requesting him to leave was “an obvious lie” and “so sad.”

Trump initially expressed disappointment in Musk earlier that same day, criticizing the billionaire’s remarks on the GOP bill, attributing Musk’s dissent to the reduction in electric vehicle tax incentives.

“I’m incredibly disappointed in Elon. I’ve assisted him a great deal,” Trump stated during his meeting with Merz. “He’s always said great things about me and hasn’t criticized me personally, although I expect that will come next.”

In a notable instance, Musk confronted Trump in real-time, posting counterarguments on social media while the president was speaking.

“Such ingratitude,” Musk tweeted, referencing his financial support to the Republican Party during the 2024 election. “Without me, Trump would have lost, with the Democrats controlling the House and Republicans at 51-49 in the Senate.”

Musk floated the idea of forming a new political party “that represents the 80% in the middle.”

Musk refuted this motive in a post on X, asserting he would accept reductions in EV incentives if lawmakers would “eliminate the MOUNTAIN of DISGUSTING PORK in the bill.”

The public fallout prompted a surge of criticism from staunch Trump supporters who had been skeptical of Musk’s prior backing. Former Trump advisor Steve Bannon told the New York Times that the US should look into Musk’s immigration status, insinuating he might be in the country illegally.

“I firmly believe he should be deported immediately,” Bannon asserted.

Since leaving government, Musk has voiced disapproval of Trump’s legislative package—his “one big beautiful bill”—for its projected increase in the US budget deficit.

The legislation aims to eliminate a credit worth as much as $7,500 for buyers of select Tesla models and other electric vehicles by 2025, seven years sooner than planned. This could lead to an estimated $1.2 billion impact on Tesla’s annual profits, according to analysts from JPMorgan.

“I’m truly disappointed because Elon knew the inner workings of this bill better than almost anyone here,” the president remarked. “Suddenly, he developed a problem only when he discovered we would cut the EV mandate.”

Musk, in another statement, claimed he hadn’t been made aware of the specifics. “This bill was never presented to me, and was passed so quickly in the dead of night that nearly no one in Congress could even read it!” he tweeted.

The two have also disagreed on Trump’s decision to withdraw Musk associate Jared Isaacman from the NASA leadership nomination upon discovering Isaacman’s past support for Democrats.

“I didn’t think it was appropriate,” Trump commented. “He wanted a certain candidate, and we said no.”

This exchange marks the latest in Musk’s rapid fallout with Trump, who had previously appointed him as a Special Government Employee overseeing cost-reduction initiatives prior to his resignation.

Just the preceding Friday, Trump had hosted an event for Musk in the Oval Office, honoring his contributions and expressing appreciation.

Trump recalled during Thursday’s meeting with Merz that Musk had appeared with a black eye at that time.

“I asked if he needed some makeup. He said ‘no, I don’t think so,’ which is interesting and quite nice,” Trump noted. “He wants to remain authentic.”

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