A no-holds-barred and really public blow-up between the world’s richest man and the president of the USA has had social media agog in current days, with every making severe accusations in opposition to the opposite.
And whereas tech billionaire Elon Musk seems to have cooled the spat considerably – deleting a few of his extra incendiary social media posts about Donald Trump – the president nonetheless seems to be in no temper to make up, warning Musk of “very severe penalties” if he backs Democrats on the mid-term elections in 2026.
Tensions erupted over Trump’s “One Big Beautiful Bill” (OBBB). The OBBB proposes intensive tax cuts which might add roughly US$3 trillion (A$4.62 trillion) to the US nationwide debt.
After stepping down from his function as advisor to Trump, Musk criticised the OBBB as “disgusting abomination” that will “burden America [sic] residents with crushing unsustainable debt”. Trump returned fireplace, suggesting “Elon was ‘sporting skinny’, I requested him to depart […] and he simply went CRAZY!”.
In a dramatic escalation, Musk responded by calling for Trump’s impeachment. Musk additionally tweeted allegations that Trump was implicated within the Epstein recordsdata associated to little one intercourse offender Jeffrey Epstein. He has since deleted these tweets.
Why has the much-hyped “bromance” between Musk and Trump immediately ended? And what was the idea of their alliance within the first place?
Musk in politics
Like many billionaires, Musk had beforehand been hesitant to get entangled in frontline politics. He says he voted for Hillary Clinton in 2016 and Joe Biden in 2020, however claimed in 2021 “I would prefer to stay out of politics”.
In early 2024, Musk was nonetheless claiming to be politically non-aligned, suggesting he wouldn’t donate to both presidential marketing campaign.
This obvious neutrality ended following the tried assassination of Trump at a July 2024 marketing campaign rally, with Musk instantly endorsing Trump.
In actuality, Musk’s conversion to the MAGA motion lengthy predated the assassination try. Musk’s hyperactive Twitter/X account shows a steady radicalisation.
Throughout 2020-2024, Musk engaged with accounts sharing MAGA and far-right conspiracy theories. These embrace the antisemitic Great Replacement Theory, and the associated South African white genocide conspiracy. Musk’s posts additionally present the obsession with opposing variety, fairness and inclusion (DEI) insurance policies attribute of the MAGA motion.
After endorsing Trump, Musk spent US$288 million (A$444 million) supporting Trump’s election and appeared at marketing campaign occasions across the nation.
Musk’s help for Trump was each ideological and pragmatic.
From tax cuts to immigration restrictions to opposing DEI, there have been clearly many ideological commonalities between Musk and Trump.
There have been additionally clear sensible advantages for each males. Trump gained the monetary backing of the world’s wealthiest man. Musk gained not solely unparalleled entry to the US president, but additionally a task main the brand new Division of Authorities Effectivity (DOGE).
DOGE: success and failure
Early reporting on the second Trump presidency famous the omnipresence of Musk, who at one level moved into Trump’s Mar-a-Lago resort to be near the president.
Nevertheless, observers had been sceptical concerning the potential effectiveness of DOGE, and Musk’s declare it could save the federal government US$2 trillion (A$3.02 trillion).
Within the early months of the Trump administration, Musk minimize authorities packages and staff at a outstanding charge. The USAID program was significantly onerous hit, as had been the Division of Schooling and the Shopper Monetary Safety Bureau.
Because the spending cuts picked up tempo, Musk started to draw extra controversy. Critics questioned the obvious energy wielded by the unelected billionaire. Musk’s ties to the far proper had been additionally within the highlight after he appeared to carry out two “Roman salutes”, which many observers believed to be a Nazi salute.
Trump clips Musk’s wings
Musk’s obvious rampage by means of authorities didn’t final lengthy. As Trump’s government appointees assumed management of their departments, Musk and DOGE skilled growing resistance. After a sequence of fractious cupboard conferences, Trump reportedly decreased the ability of DOGE in March.
Political consideration was additionally clearly affecting Musk’s companies. The unfavourable publicity has considerably broken the Tesla model, resulting in declining sales all over the world and repeated falls in Telsa’s share worth.
On Might 1, Musk introduced he could be leaving DOGE, claiming the division had saved the federal government US$180 billion (A$277 billion) in spending. This quantity is likely an exaggeration, however nonetheless falls effectively wanting his authentic goal.
Musk has discovered a harsh lesson in politics – that the complexities of presidency resist easy reform and can’t be simply rolled again in the best way a CEO would possibly slim down an organization.
For Trump, his manoeuvring of Musk seems to be one other sensible political transfer. As the general public face of DOGE, Musk bore the unfavourable wrap for early authorities cuts and chaos. Having used his cash and status, Trump allotted with Musk as he has with so many advisers and appointees earlier than.
The falling out
Musk departed his function in a muted White Home ceremony, the place Trump thanked him for his service and introduced him with a ceremonial “golden key” to the White Home.
Nevertheless, behind the general public present of civility, rigidity was brewing over Trump’s One Large Stunning Invoice.
Trump and Musk had originally claimed that the US$2 trillion (A$3.02 trillion) in DOGE financial savings may very well be used to fund a considerable tax minimize. With the effectivity financial savings not eventuating, Musk frightened the OBBB would considerably improve US public debt.
Unable to persuade Trump or different Republican legislators, Musk took to X, launching a “Kill the Invoice” marketing campaign that in the end led to his incendiary showdown with Trump.
For his half, Trump has belittled Musk, suggesting Musk solely opposed the OBBB as a result of it minimize subsidies for electrical automobiles.
Although the subsidy cuts will have an effect on Tesla, Musk has previously supported eliminating subsidies. Musk’s anger on the OBBB is extra doubtless pushed by the realisation he has been performed by Trump.
What now?
Trump has used and discarded many different highly effective figures in his chaotic political profession. Musk has extra energy than most, and would possibly have the ability to strike again at Trump.
But, along with his public status and types already tarnished, Musk could be ill-advised to choose additional fights with Trump and his adoring MAGA motion.
Accordingly, Musk has indicated over the weekend he’s open to a détente. Tesla buyers will little doubt be relieved if Musk makes good on his pledge to step again from politics and return to his companies.
Extra regarding are the prospects for democracy. With wealth and energy persevering with to pay attention in a handful of billionaires, voters seem decreased to the function of viewers pressured to look at the truth TV drama unfold.
Although Trump seems to have gained this spherical of billionaire battle royale, no matter occurs subsequent, democracy is the true loser.
