Musk versus Trump: A case of mutually assured destruction

Mint

2 days ago

Relationship status: It's complicated. The simmering feud between US President Donald Trump and tech titan Elon Musk went public last week, sending Tesla's stock tumbling (before rebounding), calling his government contracts into question and leaving Trump possibly in a more commanding position over the world's richest man.
But really, who knows what to make of this always-odd pairing between two erratic men? Late last Thursday, Musk signalled that he was open to a détente. Reports of a Friday phone call surfaced, which were dismissed by Trump.
Where this goes and how it ends is anyone's guess, but what's clear is that the political friendship that saw two of the world's most powerful men attached at the hip at the beginning of Trump's presidency has now become an unstable mess.
Also Read: X factor: The rise and fall of Elon Musk as a political figure
This, of course, is no way to run a country. The day-long brawl starkly revealed what had always been plainly obvious: This relationship is transactional and has always smelt of corruption, with Musk's $270 million campaign contribution seeming to buy him a powerful foothold in the US government, including billions in contracts and access to data and the inner workings of federal agencies.
It was only last week that Trump gifted Musk with a golden key to the White House, saying his 'service to America has been without comparison in modern history" and commemorating his final day as a special government employee. But that send-off couldn't paper over the increasing cracks in the friendship. Musk had become a political liability to Trump, even as the president became a business liability to the world's richest man.
The union has cost Musk billions, damaging his brand and leading him to suggest he was done with politics. 'I think I've done enough," Musk said in a Bloomberg interview last month when asked about his political spending on Trump and the Republican cause. The billionaire, who operates the Building America's Future PAC, had vowed to spend $100 million on midterm polls, though that's now in doubt.
And in ceding such power to Musk, Trump marred the first 100 days of his presidency with erratic cuts, mistakes and walk-backs that led to infighting among staff and cabinet members who couldn't control Musk. His Department of Government Efficiency (DOGE) was largely a failure, with costs likely outweighing savings, federal spending continuing to rise and the Trump administration now undoing some of DOGE's firings of government workers. In the days after his official tenure wrapped up, Musk then proved just how uncontrollable he was, training his fire on Trump's massive reconciliation bill, calling it an 'abomination."
'In November next year, we fire all politicians who betrayed the American people," Musk threatened on X last Tuesday.
Also Read: Electric debacle: Tesla's troubles started before Musk wore the MAGA cap
But the feud has the potential to be as damaging to both men as their unlikely friendship proved to be. At stake for Trump is the kind of muscle, megaphone and money that only Musk can bring, given his status among the powerful techno-right bros who fuelled Trump's campaign and the Republican party more broadly.
Most of Trump's political alliances have had a sell-by date, but his relationship with Musk has been like no other. For Trump, Musk was a force multiplier, magnifying his stature and bringing other billionaires, tech bros and regular bros along with him.
But in challenging Trump, and particularly by bringing up his alleged connection to the late Jeffrey Epstein [a convicted paedophile who faced charges of running a vast child sex trafficking ring], Musk tests his power over MAGA and puts himself—and his companies—at risk of cancelled contracts and potentially even federal government investigations.
Trump holds tremendous power over Musk's vast wealth. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump wrote on Truth Social. 'I was always surprised that Biden didn't do it!" This was scorched earth, revealing Trump's strong hand and Musk's big weakness.
Also Read: Trump's presidency has only seen federal spending rise so far
Ultimately, MAGA belongs to Trump. As for the massive bill, it will still likely pass in some form, though Musk has now put a spotlight on the worst parts of it—it adds $2.4 trillion to the deficit over the next decade and is hardly MAGA.
Meanwhile, some Democrats have suggested that Musk is a potential free agent and should be courted and brought into their fold. But that would be a mistake. An alliance with Musk is akin to having a tiger by its tail in a very small and crowded tent. There are no good choices and the only certainty is chaos. ©Bloomberg
The author is a politics and policy columnist for Bloomberg Opinion.