The falling-out between the world’s richest person and the president of the world’s largest economy will have consequences – for both of them.
Elon Musk, as the boss of multiple companies including Tesla, and Donald Trump, who has benefited from Musk’s support in his journey to the White House, have had a mutually beneficial relationship up until now.
Here are 10 ways in which Musk and Trump could hurt each other if they fail to broker a peace deal.
What Trump could do to Musk
Cancel government contracts related to Musk’s businesses
Responding to Musk’s criticism of his tax and spending bill, Trump wrote on his Truth Social platform on Thursday that cancelling the billionaire’s government contracts would be a straightforward way to save money.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” Trump said.
In 2024, the New York Times reported that Musk’s companies – which include electric vehicle maker Tesla and rocket company SpaceX – have over the past year been promised $3bn across nearly 100 different contracts with 17 federal agencies.
Investigate Musk’s alleged drug use
The New York Times and the Wall Street Journal have made allegations of heavy drug use by Musk, raising questions about Nasa requirements for its contractors – including SpaceX – to maintain a drug-free workforce. The Times alleged that Musk has received advanced warning of the tests. SpaceX has been contacted for comment.
Responding to the Times allegations on X last month, Musk wrote: “to be clear, I am NOT taking drugs!” In 2024 he said he sometimes used ketamine on a doctor’s prescription.
Challenge Musk’s immigration status
Steve Bannon, a Trump ally and influential “alt-right” figure, told the Times on Thursday that Musk’s immigration status should be investigated.
“They should initiate a formal investigation of his immigration status, because I am of the strong belief that he is an illegal alien, and he should be deported from the country immediately,” Bannon said of South Africa-born Musk, who is a US citizen.
Use general presidential powers against Musk
When Trump was elected, observers pointed to the myriad ways in which a Musk-friendly White House administration could benefit the financial interests of the world’s richest person. That benign environment, which includes awarding of government contracts and directing federal agencies giving Musk’s businesses an easier ride, could of course be turned hostile.
Richard Pierce, a law professor at George Washington University and a specialist in government regulation, told the Guardian at the time: “All federal regulators and prosecutors work for the president. He can tell them to do something or not to do something with the understanding that he will fire them if they disobey.”
Ostracise Musk from the Maga movement
Trump, as the leader of the “Make America great again” vanguard, can close doors on Musk. The Republican congressman Troy Nehls excoriated the billionaire on Thursday, telling him: ““You’ve lost your damn mind.” He added: “Enough is enough.”
Musk can handle such opprobrium and, given his considerable wealth, he is an important source of funding for Republican politicians.
What Musk could do to Trump
Turn X against the White House
Musk used his X platform, and his more than 220 million followers on it, to rally support for Trump’s victory in the 2024. It also provided a platform for rightwing views that helped publicise the Maga agenda.
Theoretically, Musk could at least use his own X account to criticise Trump with as much regularity as he pumped the president’s policies (the Tesla chief executive is a prolific user of his own platform).
However, this also depends on Musk’s influence with the US electorate. Five out of 10 US adults say they have an unfavourable view of Musk, according to the Pew Research Center. But it should be noted that seven out of 10 Republicans or Republican-leaning adults hold a favourable view – he’s not going to sway many Democrats who dislike Trump anyway.
Form a new political movement
Musk, who is worth more than $300bn (£220bn), could divert his considerable financial resources away from the Republican party and start a new political entity. Musk spent $250m on getting Trump elected in 2024, signalling his willingness to invest heavily in politics.
On Thursday he posted a poll on X and asked: “Is it time to create a new political party in America that actually represents the 80% in the middle?” More than 80% of the 4.8 million respondents voted “yes”.
Create geopolitical problems with his businesses
The Starlink satellite broadband platform, owned by Musk’s SpaceX, is playing a key rule in Ukraine’s fight against a Russian invasion, while China is an important manufacturing and consumer base for Tesla. Through his businesses, Musk also has political contacts around the world and is regularly photographed in the company of global leaders. However, any damage Musk causes to Trump’s international standing or interests will have to be balanced with any knock-on effect on his own businesses.
Create problems for Nasa
Nasa has a close relationship with Musk’s SpaceX, with the company’s Dragon spacecraft being used to transport the agency’s astronauts to and from the International Space Station. Musk immediately pledged to decommission Dragon in the wake of the Trump spat on Thursday – before quickly signalling an about-face. Nonetheless, SpaceX is a crucial part of Nasa’s ISS operations.
Tell-all on Trump
Musk has been a fixture of Trump’s inner circle for a considerable period of time and, as the contents of his X account show, he is capable of taking multiple damaging swipes at people. However, members of Trump’s inner circle will have had the same access to Musk, whose personal life is becoming a media staple.
