Trump and Musk: Breakups, Reconciliations, and the Prospect of Reuniting [AK Radio]

Musk Forced to Back Down to Save Tesla
Trump Administration's Policies Clash with Electric Vehicle Business

The relationship between President Donald Trump and Tesla CEO Elon Musk has undergone a dramatic transformation. The two, who were once so close during the early days of the administration that their rapport was dubbed a "bromance," went through intense conflict before recently entering a phase of reconciliation. The evolution of their relationship has had a significant impact not only on their personal dynamics but also on the broader landscape of American politics and industry.

The relationship between President Trump and Musk reached its peak during the 2024 presidential election. Musk fully supported President Trump and played a key role in his electoral victory, earning him the label of a "top confidant" and even leading to his attendance at family events. However, cracks began to appear after Musk entered the White House as head of the Government Efficiency Department. Musk launched an aggressive campaign to cut government spending, which included large-scale layoffs of public employees. As a result, Musk became a target of intense criticism within the United States, but he endured all the backlash in order to save government finances.

The problem arose when President Trump, taking advantage of the fiscal resources secured by Musk's efforts, suddenly introduced a tax cut plan. From Musk's perspective, he had borne all the criticism to save money, only to see Trump pursue policies that would once again worsen the government's finances. The conflict between the two soon became public. Musk posted a series of intense messages on social media, hinting at the possibility of founding a third party, and even liked a post suggesting that President Trump should be impeached.

President Trump did not remain silent. He mentioned the elimination of Tesla subsidies and even declared that he would sell his own red Tesla vehicle. This symbolic gesture demonstrated that their relationship had reached the point of no return. Behind the conflict was a power struggle within the White House. As Musk appeared excessively close to the Trump family, other aides strongly objected, saying, "Musk is acting as if he is the top confidant." Ultimately, Trump decided not to extend Musk's term as head of the Government Efficiency Department and let him go.

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The deterioration of the relationship dealt a severe blow to Musk. In Europe, anti-Trump sentiment led to Tesla sales being cut in half, and Tesla's stock price plunged by more than 20%. Investment banks also downgraded their ratings on Tesla from "buy" to "neutral," citing concerns that Trump might eliminate Tesla subsidies. An even greater concern was the outlook for Tesla's future business.

Tesla is set to launch its unmanned autonomous vehicles and robotaxi business, which it sees as a new growth engine, on June 22, 2025, U.S. time. Chinese companies such as Baidu and Pony.ai are already conducting pilot projects in more than 30 cities, and Google's Waymo taxis have established a dominant position in California. As a latecomer, Tesla was in urgent need of government support. Ultimately, Musk had no choice but to yield to business realities. With disappointing first-quarter results and large-scale stock sales by the board of directors shaking the company, the risks of continuing the conflict with Trump were simply too great.

Interestingly, Musk's father, Errol Musk, became involved in the dispute. Errol Musk, a well-known businessman in South Africa, attended a forum in Moscow and predicted that "my son was wrong and will apologize to President Trump." His prediction came true when the two reconciled, drawing public attention. However, Musk and his father have rarely lived together since his parents divorced when Musk was eight years old, and Musk himself has claimed in his autobiography that he is self-made and inherited nothing from his father. Therefore, it is unclear whether his father's advice had any direct influence.

In fact, Errol Musk's remarks appear to have represented the interests of the entire Musk family. The Musk family operates various businesses in Canada, the United States, and Europe, so a deterioration in relations with Trump could have negatively affected the family as a whole.

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The normalization of the Trump-Musk relationship provided Tesla with short-term benefits, but fundamental dilemmas remain unresolved. Tesla's core business, the electric vehicle industry, is inherently at odds with the policy direction of the Trump administration. The key to the electric vehicle business?securing batteries and rare earth elements?relies heavily on trade with China. However, the Trump administration is engaged in a tariff war with China, which negatively affects Tesla's business environment.

In addition, Trump is rolling back the Biden administration's environmental policies and promoting fossil fuels and nuclear power, which fundamentally conflicts with the electric vehicle industry. Politically, Democratic strongholds such as California are pushing for laws mandating electric vehicles from the mid-2030s, but the Trump administration is seeking to block these efforts. Tesla finds itself at the center of these policy conflicts.

The changing relationship between Trump and Musk illustrates the complex interplay between political and business power in contemporary America. Ultimately, the structure in which political power dominates business power has not changed, but both sides have recognized their mutual needs and chosen pragmatic compromise. For Musk, it was a matter of Tesla's survival; for Trump, it was about maintaining America's technological supremacy and industrial competitiveness. Especially considering the rapid rise of Chinese companies in electric vehicles and autonomous driving, Tesla's success is directly linked to America's technological sovereignty.

The future of their relationship will depend on how they resolve these policy dilemmas. Whether the Trump administration can maintain its fossil fuel policies while also securing American leadership in the electric vehicle industry, and whether Musk can manage political risks while stabilizing his business, will be key. This episode of conflict and reconciliation will be remembered as a compelling example of how politics and business are intertwined in an era of global power competition, and how personal emotions and national strategy can clash and ultimately reach compromise.