Trump-Musk News, Latest News about Trump-Musk

KKN Gurugram Desk | Once seen as powerful allies during the 2024 U.S. presidential campaign, Donald Trump and Elon Musk are now publicly at odds. The fallout appears to stem from disagreements over electric vehicle (EV) policy, federal subsidies, and taxation reforms under Trump’s administration. On Thursday, President Trump publicly expressed his disappointment with Elon Musk and issued a warning that federal contracts awarded to Musk’s companies, including Tesla and X (formerly Twitter), may be cut if tensions escalate further. This marks a significant turning point in what was once seen as a strategic political-business relationship, with Musk reportedly helping influence pro-tech economic stances in Trump’s earlier campaign strategies. What Triggered the Fallout Between Trump and Musk? The tension has reportedly been brewing for weeks, but Trump’s rollback of the federal EV mandate is being cited as the tipping point. Trump’s Comments: “Elon supported me very strongly. He campaigned for me, stood with my policy positions. But I am very disappointed. He knew everything about the EV policy. He had no issue with it initially,” Trump said. According to Trump, Musk objected only when the administration began scaling back the EV mandate, which included billions of dollars in subsidies for electric vehicle manufacturing and infrastructure — many of which directly benefited Tesla. “Suddenly, he’s upset because we’re reducing the EV mandate. That’s billions of dollars we’re talking about. But it was unfair. We want to support all types of vehicles — gasoline, combustion, hybrid. Not just electric,” Trump added. What Was the EV Mandate and Why Was It Important to Musk? The federal EV mandate, introduced during the Biden administration and partially continued under Trump’s earlier proposals, involved: Tax incentives for EV buyers Grants and subsidies to EV manufacturers Infrastructure support for EV charging stations Emission regulation credits Tesla, being the industry leader, had significantly benefited from this policy. Any rollback would directly impact Tesla’s bottom line, especially with growing competition from hybrid and fuel-based alternatives. Tax Policy Bill: Another Source of Tension In addition to the EV mandate, sources within the Trump administration suggest that a new tax policy bill also caused friction. This bill proposes: Adjustments in corporate tax credits Reduced green subsidies A cap on federal support for high-profit corporations Musk, whose companies posted strong profits, may face reduced eligibility for tax breaks under the new framework. While Musk hasn’t issued a direct statement about this, insiders say he was “extremely frustrated” by the lack of transparency and the economic implications for innovation-driven firms. Trump’s Warning: “Reconsidering Federal Contracts” Taking the conflict to the next level, Trump has publicly warned of reviewing and potentially cutting federal contracts given to Musk’s companies, especially Tesla and SpaceX. “I’ve helped Elon a lot. But if this continues, we will look into every government partnership — not out of revenge, but to ensure fairness,” Trump stated. This statement is being seen as a direct threat to billions of dollars worth of contracts, especially those related to: SpaceX’s NASA partnerships Tesla’s federal fleet and infrastructure programs X’s (Twitter’s) digital service tie-ups with U.S. agencies Timeline of the Trump-Musk Relationship Year Event 2020 Musk begins criticizing California's COVID policies; praises Trump’s economic stance 2023 Trump and Musk meet privately during pre-election lobbying Early 2024 Musk makes several statements supporting Trump's re-election bid Late 2024 Musk advises Trump on tech and energy strategy June 2025 Rift becomes public after EV mandate rollback and tax policy announcement Public and Political Reactions Mixed Reactions from Industry and Lawmakers Republican leaders are divided — some support Trump’s stance on balanced vehicle support, others worry about alienating the tech sector. Democrats, meanwhile, criticize both leaders — Trump for politicizing business contracts, and Musk for benefiting from policies he now opposes. Wall Street analysts warn that Tesla stock could see volatility if federal contract reviews materialize. Political Strategy or Personal Ego Clash? Analysts suggest that the Trump-Musk clash is not just about policy disagreements but also personal influence and political positioning: Trump, known for demanding loyalty, may have perceived Musk’s silence or criticism as betrayal. Musk, on the other hand, has increasingly projected himself as an independent thinker with his own political and social stances. There are also reports that Musk has distanced himself from any formal political endorsement for the 2028 elections, which could be a strategic move to maintain neutrality or build future leverage. What This Means for Musk’s Business Empire Tesla: Risk of reduced subsidies and tax credits Greater competition from hybrid and gas-powered models Possible reviews of federal contracts for EV infrastructure SpaceX: Scrutiny on NASA and DoD projects Threat to multi-year federal contracts X (formerly Twitter): Potential risk to any federal communications or cybersecurity partnerships Heightened political pressure from both ends of the spectrum Investor Concerns and Market Reactions Tesla (TSLA): After Trump’s warning, TSLA shares fell 3.2% in pre-market trading. Analysts at Morgan Stanley predict “contract risk exposure” could lead to a 5–10% drop if action is taken. SpaceX: As a private company, SpaceX is less exposed to public market fluctuations, but any pause in federal contracts could affect its launch schedule and R&D plans. Has Musk Responded? As of this report, Elon Musk has not released a formal statement in response to Trump’s public warning. However: He liked and retweeted a post suggesting government support should not dictate market leadership. Insiders claim Musk is “shocked by the personal tone” Trump has taken and is “unlikely to retaliate publicly unless contracts are actually affected.” The Trump-Musk rift goes beyond personal disappointment — it reveals deep fault lines between business interests, government policy, and political loyalty. With billions in federal contracts on the line and Tesla’s future market position at stake, this public fallout could reshape how big tech interacts with government leadership in the years ahead. As Trump hints at contract reviews and Musk remains silent (for now), the coming weeks will determine whether this feud intensifies — or if backchannel diplomacy can restore a once-powerful alliance.

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Trump-Musk Rift: EV Mandate and Tax Policy at Center of Breakup Between Former Allies