Trump and Musk Escalate Public Feud Over Agenda Bill

In a dramatic turn of events, former President Donald Trump and billionaire entrepreneur Elon Musk have intensified their public feud regarding a domestic policy bill. The conflict erupted on their respective social media platforms, with Trump threatening to terminate Musk’s government contracts, while Musk countered by asserting that Trump would not have won the November election without his support.

Personal Attacks Fly

The discord between Trump and Musk intensified after Musk labeled Trump’s domestic policy bill a “disgusting abomination” on X.

“I’m very disappointed in Elon. I’ve helped him a lot. We had a great relationship, and I’m not sure if that’s the case anymore. I was surprised by his comments, especially after the wonderful sendoff we had. He praised me highly in front of everyone. Elon is upset because we made changes to the E.V. mandate, which was a significant financial commitment for electric vehicles. They’re struggling, and now they want us to pay billions in subsidies. Elon has known about this for a long time,” Trump stated.

 

The rapid deterioration of their once-unlikely alliance unfolded within hours on Thursday, as both figures exchanged barbs over social media, escalating their feud over both significant issues and trivial matters.

What began as a disagreement over Trump’s domestic policy bill quickly spiraled into disputes over who deserved more credit for Trump’s electoral victory, Musk’s decision to appear in the Oval Office without makeup to cover a black eye, and Trump’s sudden withdrawal of support for a Musk associate nominated to lead NASA.

Escalation of Threats

Their exchanges quickly devolved into threats, with Trump questioning whether the government should terminate its lucrative contracts with Musk’s companies. In response, Musk suggested that Trump’s name appeared in government documents related to the financier and sex offender Jeffrey Epstein, while also seemingly endorsing calls for Trump’s impeachment.

Until recently, Musk was considered a key adviser to Trump. However, their relationship, which had been built on mutual benefit—Trump providing political backing and Musk offering financial support—began to unravel after months of tension. Musk invested over $250 million in support of Trump’s 2024 presidential campaign, and after Trump’s victory, he granted Musk significant leeway to reduce the federal workforce. Just last week, Trump had praised Musk in the Oval Office, calling him “one of the greatest business leaders and innovators the world has ever produced,” while Musk expressed his commitment to remain a “friend and adviser” to the president.

However, during a meeting with Germany’s new chancellor, Friedrich Merz, Trump broke his silence and criticized Musk, expressing his disappointment.

Musk swiftly responded on X, stating, “Without me, Trump would have lost the election; Democrats would control the House, and Republicans would be 51-49 in the Senate. Such ingratitude.”

Additional Insights

• Musk’s Political Leverage: Recently, Musk conducted a poll on X asking his followers if a “new political party” should be formed to represent the “80 percent in the middle.” Despite his engagement with right-wing leaders, he has often positioned himself as a centrist. Although he pledged $100 million to Trump-affiliated groups, he has yet to fulfill that promise and may redirect his resources toward this new political initiative.

• Financial Consequences: The public spat has impacted financial markets, with Tesla’s stock prices declining while shares of Musk’s competitors in the space exploration sector experienced an uptick.

• Stephen Bannon’s Involvement: Stephen Bannon, a vocal critic of Musk, has advised Trump to terminate all of Musk’s contracts and initiate multiple investigations into the billionaire.

As the feud continues, the dynamics between these two powerful figures remain uncertain, with both individuals holding significant influence over political and financial landscapes.

Markets react to Trump’s diagnosis

US stocks ended a choppy session lower on Friday as investors reacted to news of President Donald Trump and first lady Melania Trump testing positive for the coronavirus. The Dow Jones Industrial Average lost 134.09 points, 0.5 percent, to 27,682.81, with the S&P 500 index retreating 32.36 points, or 1 percent, to 3,348.44. The Nasdaq Composite Index fell 251.49 points, or 2.2 percent, to end the day at 11,075.02.

European markets meanwhile closed higher, reversing earlier losses and capping another volatile week as the closing bell struck before the wave of selling overtook their peers across the Atlantic. The pan-European STOXX 600 index added 0.3 percent and the UK’s FTSE 100 gained 0.4 percent. Investors held onto hopes of more US stimulus after data emerged showing September Job Growth slowing more than expected in the world’s largest economy.

Maltese markets ended lower, with the MSE Equity Total Return Index closing down 0.33 percent to €7,276.329 on very thin volumes. Only three equities traded, with Bank of Valletta Plc closing unchanged, while Trident Estates Plc dropped 3.33 percent to €1.45 and Malta International Airport Plc lost 2.54 percent to €4.60.

Trump’s recovery from COVID-19

All eyes are currently on how a potential deterioration in President Donald Trump’s health could impact asset prices in coming weeks, as the U.S. leader remains hospitalized after being diagnosed with COVID-19. Many investors are concerned that a serious decline in Trump’s health less than a month before Americans go to the polls on the 3rd of November could roil a U.S. stock market that recently notched its worst monthly performance since its selloff in March while causing turbulence in other assets.

Trump’s diagnosis has intensified the spotlight on the fiscal stimulus talks in Washington, with investors saying agreement on another aid package could act as a stabilizing force on markets in the face of election-related uncertainty.

U.S. House of Representatives Speaker Nancy Pelosi, a Democrat, said on Friday that negotiations were continuing, but she is waiting for a response from the White House on key areas.