Latest news with #DepartmentofgovernmentEfficiency
Business Times
4 days ago
- Business
- Business Times
Trump is not interested in talking to Musk, White House official says
[WASHINGTON] US President Donald Trump is not interested in talking with his former ally Elon Musk, amid a bitter feud over the president's sweeping tax-cut bill, a White House official said on Friday (Jun 6), adding that no phone call between the two men is planned for the day. A separate White House official had said earlier that Trump and Musk were going to talk to each other on Friday. Trump, the world's most powerful leader, and Musk, the world's richest man, conducted an extraordinary day of hostilities on Thursday – largely over social media – marking a stark end to a close alliance. Shares in Musk's Tesla closed down 14 per cent on Thursday, losing about US$150 billion in market value in the largest single-day decline in value in the electric vehicle maker's history. In pre-market trading on Friday they pared some of those losses, rising as much as 5 per cent after the early news that the two men were scheduled to speak. Musk had bankrolled a large part of Trump's presidential campaign and was then brought as one of the president's most visible advisers, heading up a sweeping and controversial effort to downsize the federal workforce and slash spending. The verbal punches erupted on Thursday after Trump criticised Musk in the Oval Office and the pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. The falling-out had begun brewing days ago when Musk, who left his role as head of the Department of government Efficiency a week ago, denounced Trump's sweeping tax-cut and spending bill. The president initially stayed quiet while Musk campaigned to torpedo the bill, saying it would add too much to the nation's US$36.2 trillion in debt. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump broke his silence on Thursday, telling reporters he was 'very disappointed' in Musk. 'Look, Elon and I had a great relationship. I don't know if we will anymore,' Trump said. As Trump spoke, Musk responded on X. 'Without me, Trump would have lost the election,' wrote Musk, who spent nearly US$300 million backing Trump and other Republicans in last year's election. In another post, Musk asserted that Trump's signature import tariffs would push the US into a recession later this year. 'The easiest way to save money in our Budget, billions and billions of US dollars, is to terminate Elon's governmental Subsidies and Contracts,' Trump posted. Minutes after the closing bell, Musk replied, 'Yes,' to a post on X saying Trump should be impeached, something that would be highly unlikely given Trump's Republicans hold majorities in both chambers of Congress. Space business Musk's businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space programme, said on Thursday that as a result of Trump's threats he would begin decommissioning SpaceX's Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station. Late in the day, Musk backed off the threat. In another sign of a possible detente to come, Musk subsequently wrote: 'You're not wrong,' in response to billionaire investor bill Ackman saying Trump and Musk should make peace. Trump and Musk are both political fighters with a penchant for using social media to attack their perceived enemies, and many observers had predicted a falling-out. Musk hit at the heart of Trump's agenda earlier this week when he targeted what Trump has named his 'big, beautiful bill', calling it a 'disgusting abomination' that would deepen the federal deficit. His attacks amplified a rift within the Republican Party that could threaten the bill's prospects in the Senate. Nonpartisan analysts say Trump's bill could add US$2.4 trillion to US$5 trillion to the nation's US$36.2 trillion in debt. A prolonged feud between the pair could make it harder for Republicans to keep control of Congress in next year's midterm. REUTERS
Business Times
4 days ago
- Business
- Business Times
Feuding Trump and Musk are now not expected to speak on Friday
[WASHINGTON] US President Donald Trump and his one-time close ally billionaire Elon Musk were now not expected to talk on Friday (Jun 6), despite efforts by White House aides to get a truce after a huge public clash the previous day. A White House official told Reuters that no call was planned for Friday. A White House official had said earlier that the two men would speak on Friday. A call could ease the feuding after an extraordinary day of hostilities – largely conducted over social media – that marked a stark end to a close alliance. Shares in Musk's Tesla closed down over 14 per cent on Thursday, losing about US$150 billion in market value in the largest single-day decline in value in the electric vehicle maker's history. In pre-market trading on Friday they pared some of those losses, rising as much as 5 per cent after the early news that the two men were scheduled to speak. Musk had bankrolled a large part of Trump's presidential campaign and was then brought as one of the president's most visible advisers, heading up a sweeping and controversial effort to downsize the federal workforce and slash spending. The verbal punches erupted on Thursday after Trump criticised Musk in the Oval Office and the pair then traded barbs on their social media platforms: Trump's Truth Social and Musk's X. The falling-out had begun brewing days ago when Musk, who left his role as head of the Department of government Efficiency a week ago, denounced Trump's sweeping tax-cut and spending Bill. REUTERS
Business Times
20-05-2025
- Automotive
- Business Times
Musk will reduce political spending, committed to being Tesla CEO in 5 years' time
[DOHA] Elon Musk said he plans to significantly cut political spending and is committed to staying on as Tesla's CEO for another five years, aiming to address concerns about balancing his role at the automaker with his involvement in the Trump administration. Musk's comments could have large implications for next year's mid-term elections as he has been a Republican political mega donor. He helped Donald Trump get elected as US President with a quarter of a billion US dollars in donations and set up the administration's Department of government Efficiency (DOGE), which he is leading. 'In terms of political spending, I'm gonna do a lot less in the future. I think I've done enough,' Musk said on Tuesday (May 20) at an economic forum in Qatar. The close involvement has given rise to doubts about his focus on the world's most valuable automaker in recent months. Having reasonable control of Tesla was the most important factor in staying on as CEO, Musk said. He owns about 13 per cent of the automaker. 'Yes, no doubt about that at all,' Musk said in response to a question on whether he planned to stick around as Tesla CEO. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Musk said last year he was uncomfortable growing Tesla as an AI and robotics leader without having 25 per cent voting control at the firm. The billionaire kicked off his appeal to try to restore his record US$56 billion pay package in March, claiming a lower court judge made multiple legal errors in rescinding the compensation. Tesla shares had briefly risen 3.3 per cent on the comments but later pared gains to trade up about 1 per cent. The stock is down 15 per cent for the year. Earlier this month, Tesla chair Robyn Denholm denied a Wall Street Journal report that said board members had reached out to several executive search firms to find a replacement for Musk. Musk said at the event that Tesla had already turned around sales, and demand was strong in regions apart from Europe, where the company has faced protests over his political views and endorsement of Trump. Tesla reported a 13 per cent drop in first-quarter deliveries and some investors are bracing for another yearly decline in 2025, due to backlash against his political moves and as customers waited for cheaper versions of the redesigned Model Y crossover, its best-selling vehicle. Musk, who also leads other companies including rocket maker SpaceX, reiterated that the satellite Internet service Starlink might go public at some point in the future. Starlink has expanded rapidly worldwide to operate in more than 70 countries, with a strong focus on further growth in emerging markets such as India. There should be some US AI regulations, but the sector should not be overregulated, said Musk, who founded artificial intelligence company xAI in 2023 in response to growing adoption of generative AI. XAI is ramping up its data centre capacity to train more advanced models, by raising billions of US dollars, as competition intensifies. Its supercomputer cluster in Memphis, Tennessee, called 'Colossus', is touted as the largest in the world. REUTERS
