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At one point, Trump and Musk walked in lockstep. Trump admired Musk’s innovation; Musk appreciated Trump's regulatory flexibility. But that dynamic shattered the moment Musk criticized the Republican mega-bill worth $3.3 trillion. Musk warned that it would explode the national deficit and saddle Americans with unnecessary burdens. He described it as a betrayal of fiscal responsibility wrapped in populist packaging.
Trump's response was swift and severe. He accused Musk of acting out not because of economic principles, but because the bill scales back electric vehicle subsidies—threatening Tesla’s revenue stream. What started as a policy disagreement quickly morphed into personal and political warfare.
Under Trump’s first term, the Department of Government Efficiency (DOGE) was introduced as a Musk-led initiative to streamline federal agencies. Now Trump is toying with reactivating it—not to cut red tape but to potentially target Musk’s own companies.
Trump told allies that DOGE might be “turned on its master,” with the authority to investigate government contracts tied to Tesla, SpaceX, and Musk’s other interests. The notion of DOGE, once a brainchild of Musk, becoming a tool of political retaliation, is poetic—and brutal.
Trump didn’t stop at economic threats. At a recent rally, he suggested America should "look into" Musk’s naturalization. Musk, a South African by birth and a U.S. citizen since 2002, is legally untouchable. But Trump’s insinuation was more about intimidation than legality. The message was loud and clear: no one, not even naturalized billionaires, is immune to political punishment.
While many dismissed the comment as rhetorical noise, it underscores the lengths Trump is willing to go to assert dominance and punish dissent.
Not one to be silenced, Musk hit back with his own campaign. He announced plans to bankroll primary challengers against any Republican senator who supports the spending bill. More significantly, he hinted at forming a new political entity: the America Party.
This would be no symbolic gesture. With Musk’s resources, influence, and branding power, such a party could fracture the Republican base, lure independent voters, and create chaos in the 2026 and 2028 election cycles. Musk is positioning himself not just as a business leader but as an ideological force.
Markets are already reacting. Tesla stock dropped nearly 6 percent after Trump’s comments and Musk’s threats became public. The fear is real. Federal contracts for electric vehicle production, space launches, and AI development are crucial for Musk’s ventures. If Trump wins another term and holds a grudge, he could redirect billions in funding and regulatory preference.
Wall Street now sees a political risk factor attached to Musk, something investors are not used to calculating with such volatility.
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