logo
Trump will come out on top in his battle with Musk

Trump will come out on top in his battle with Musk

Yahoo14 hours ago

In the end it was always bound to get messy – how could it not? Two bombastic billionaires aligned by ambition and imperiousness – an unlikely bromance fuelled by an unquenchable attraction to both legitimacy and impunity.
But here we are – barely four months after joining him in the Oval Office, Tesla-chief Elon Musk has not merely fallen out with his presidential benefactor: he's taking their battle public. On Thursday, Musk – now finished leading Trump's cost-cutting Department of Government Efficiency – 'went nuclear,' as the New York Post phrased it, accusing the president of covering up his cameo in the infamous Jeffrey Epstein sex-crimes saga.
'Time to drop the really big bomb,' posted Musk on Twitter Thursday afternoon. 'That is the real reason they have not been made public,' he added as he teased an Epstein-related bombshell.
The daggers come as Musk takes aim at Trump's massive One Big Beautiful Bill Act, which bundles together much of the president's key legislative objectives. The bill has already passed in the House, but Musk wants Congress to 'kill it.' His beef: among other provisions, the ending of tax credits for electric vehicles (like Musk-made Teslas) which was approved by former president Joe Biden.
As both Trump and Musk know well, the truth around the Epstein affair matters far less than the fact that the two men are fighting about it. Even if Musk uncovers some sort of sexual salaciousness, it's unlikely to matter – both to Trump, nor his base, who are fully aware of (and unbothered by) the President's messy amorous history. What really matters is Trump – both his tendency for prolonged distractions (such as Musk!) and his zeal for heart-daggering retribution.
Still Musk, despite lacking presidential powers, cannot be easily taken down – after all his perch exists because the president placed him there. But neither can Musk simply dismiss Trump outright. Ever skilful with a threat, Trump has already warned that he could withhold 'billion and billions of dollars' in federal funding for Musk-related companies, such as Tesla and Space X. Little doubt Trump could easily identify billions more.
But cutting Musk's cash flow won't come without consequence: SpaceX, for instance, forms much of the transport network needed to maintain the International Space Station. Yet Trump's barbs matter just as much – Tesla's stock sank nearly 10 per cent on Thursday in response to the Trump-Musk kerfuffle. Considering the stock is already trading 40 per cent below its 52-week high, Musk could face internal pressure to tone things down if his feud with the president deepens.
It likely will – at least in the short term. After all, neither Trump nor Musk shy away from conflict and both view adversarialism as a necessary tool of conquest. Both certainly have the required ammunition – billions of dollars, wholly-owned social media platforms and eager, sycophantic fan bases.
But Trump – clear-eyed against Musk's alleged drug-taking – will likely wind up the winner. Having poured hundreds of millions of dollars into Trump's campaign, Musk clearly craves a return on his investment. He had one when he was hanging in the Oval, but now cast adrift he's clearly resentful and seeking vengeance.
Trump, however, wants nothing nor really needs nothing from Musk – except, when the time comes, to simply be left alone. For men like Musk and Trump – consumed with attention and approval – indifference may prove the most potent poison of all.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Musk could lose billions of dollars depending on how spat with Trump unfolds

time13 minutes ago

Musk could lose billions of dollars depending on how spat with Trump unfolds

NEW YORK -- The world's richest man could lose billions in his fight with world's most powerful politician. The feud between Elon Musk and Donald Trump could mean Tesla's plans for self-driving cars hit a roadblock, SpaceX flies fewer missions for NASA, Starlink gets fewer overseas satellite contracts and the social media platform X loses advertisers. Maybe, that is. It all depends on Trump's appetite for revenge and how the dispute unfolds. Joked Telemetry Insight auto analyst Sam Abuelsamid, 'Since Trump has no history of retaliating against perceived adversaries, he'll probably just let this pass.' Turning serious, he sees trouble ahead for Musk. 'For someone that rants so much about government pork, all of Elon's businesses are extremely dependent on government largesse, which makes him vulnerable.' Trump and the federal government also stand to lose from a long-running dispute, but not as much as Musk. The dispute comes just a week before a planned test of Tesla's driverless taxis in Austin, Texas, a major event for the company because sales of its EVs are lagging in many markets, and Musk needs a win. Trump can mess things up for Tesla by encouraging federal safety regulators to step in at any sign of trouble for the robotaxis. Even before the war of words broke out on Thursday, the National Highway Transportation Safety Administration requested data on how Musk's driverless, autonomous taxis will perform in low-visibility conditions. That request follows an investigation last year into 2.4 million Teslas equipped with full self-driving software after several accidents, including one that killed a pedestrian. A spokesman for NHTSA said the probe was ongoing and that the agency "will take any necessary actions to protect road safety.' The Department of Justice has also probed the safety of Tesla cars, but the status of that investigation is unclear. The DOJ did not respond immediately to requests for comment. The promise of a self-driving future led by Tesla inspired shareholders to boost the stock by 50% in the weeks after Musk confirmed the Austin rollout. But on Thursday, the stock plunged more than 14% amid the Trump-Musk standoff. On Friday, it recovered a bit, bouncing back nearly 4%. 'Tesla's recent rise was almost entirely driven by robotaxi enthusiasm," said Morningstar analyst Seth Goldstein. 'Elon's feud with Trump could be a negative.' One often-overlooked but important part of Tesla's business that could take a hit is its sales of carbon credits. As Musk and Trump were slugging it out Thursday, Republican senators inserted new language into Trump's budget bill that would eliminate fines for gas-powered cars that fall short of fuel economy standards. Tesla has a thriving side business selling 'regulatory credits' to other automakers to make up for their shortfalls. Musk has downplayed the importance of the credits business, but the changes would hurt Tesla as it reels from boycotts of its cars tied to Musk's time working for Trump. Credit sales jumped by a third to $595 million in the first three months of the year even as total revenue slumped. Musk's foray into right-wing politics cost Tesla sales among the environmentally minded consumers who embraced electric cars and led to boycotts of Tesla showrooms. If Musk has indeed ended his close association with Trump, those buyers could come back, but that's far from certain. Meanwhile, one analyst speculated earlier this year that Trump voters in so-called red counties could buy Teslas 'in a meaningful way.' But he's now less hopeful. 'There are more questions than answers following Thursday developments,' TD Cowen's Itay Michaeli wrote in his latest report, 'and it's still too early to determine any lasting impacts.' Michaeli's stock target for Tesla earlier this year was $388. He has since lowered it to $330. Tesla was trading Friday at $300. Tesla did not respond to requests for comment. Trump said Thursday that he could cut government contracts to Musk's rocket company, SpaceX, a massive threat to a company that has received billions of federal dollars. The privately held company that is reportedly worth $350 billion provides launches, sends astronauts into space for NASA and has a contract to send a team from the space agency to the moon next year. But if Musk has a lot to lose, so does the U.S. SpaceX is the only U.S. company capable of transporting crews to and from the space station, using its four-person Dragon capsules. The other alternative is politically dicey: depending wholly on Russia's Soyuz capsules. Musk knew all this when he shot back at Trump that SpaceX would begin decommissioning its Dragon spacecraft. But it is unclear how serious his threat was. Several hours later — in a reply to another X user — he said he wouldn't do it. A subsidiary of SpaceX, the satellite internet company Starlink, appears to also have benefited from Musk's once-close relationship with the president. Musk announced that Saudi Arabia had approved Starlink for some services during a trip with Trump in the Middle East last month. The company has also won a string of other recent deals in Bangladesh, Pakistan, India and elsewhere as Trump has threatened tariffs. It's not clear how much politics played a role, and how much is pure business. On Friday, The Associated Press confirmed that India had approved a key license to Starlink. At least 40% of India's more than 1.4 billion people have no access to the internet. Big advertisers that fled X after Musk welcomed all manner of conspiracy theories to the social media platform have started to trickle back in recent months, possibly out of fear of a conservative backlash. Musk has called their decision to leave an 'illegal boycott' and sued them, and the Trump administration recently weighed in with a Federal Trade Commission probe into possible coordination among them. Now advertisers may have to worry about a different danger. If Trump sours on X, "there's a risk that it could again become politically radioactive for major brands,' said Sarah Kreps, a political scientist at Cornell University. She added, though, that an 'exodus isn't obvious, and it would depend heavily on how the conflict escalates, how long it lasts and how it ends.'

Livonia police officer shoots armed man who was "behaving erratically"
Livonia police officer shoots armed man who was "behaving erratically"

CBS News

time14 minutes ago

  • CBS News

Livonia police officer shoots armed man who was "behaving erratically"

Police in Livonia, Michigan, say an officer shot a man who they say was acting erratically and pointed a gun at the officer Friday afternoon. Authorities received a call at about 2:10 p.m. about a 31-year-old Livonia man with a gun near Middlebelt and Five Mile roads. The caller told police that the man was acting erratically. Responding officers made contact with the man, who pointed the gun at an officer. Livonia police say the officer fired his weapon, striking the man. He was taken to the hospital for treatment. His current condition is unknown. Police say the officer was not injured. Michigan State Police is investigating the shooting.

Supreme Court Allows DOGE Access to Social Security Data
Supreme Court Allows DOGE Access to Social Security Data

Wall Street Journal

time16 minutes ago

  • Wall Street Journal

Supreme Court Allows DOGE Access to Social Security Data

WASHINGTON—The Supreme Court on Friday cleared the way for members of the Department of Government Efficiency, a cost-cutting group once led by Elon Musk, to access sensitive Social Security Administration records. Granting an emergency request by the Trump administration, the justices lifted a lower court order that for now had barred DOGE employees or affiliates from accessing the agency's systems and directed them to delete personal information they already had gathered.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store