In 2024, the new U.S. presidential election kicked off, and multiple media outlets reported that Trump had tried to win Musk's support, even discussing potential roles such as "Secretary of the Treasury" and "Technology Advisor". Musk did not confirm these details at the time but acknowledged meeting with Trump privately. Musk emphasized that he would not directly fund any candidate but called for "restoring freedom of speech, reducing tax burdens, and curbing regulations", which was interpreted as support for the Republican stance. Musk's support for limiting illegal immigration and criticism of big government aligned with Trump's position.
During the tight 2024 presidential race, Musk repeatedly stated he would not return to the Democratic Party and was strongly dissatisfied with Biden. Trump praised Musk as a "smart businessman" at multiple rallies, and Musk's interest in political influence significantly increased, promoting conservative candidates in several districts.
Subsequently, Musk's support for Trump became public, and he became one of Trump's most solid allies, speaking at multiple rallies, and their relationship grew closer.
After Trump ultimately won the U.S. presidential election for the second time, Musk was widely considered a "big winner", and Tesla experienced a "post-election rally", with stock prices rising over 130% from August to the end of last year. Musk subsequently became the head of the Government Efficiency Department (DOGE), responsible for reducing government expenditures.
During his tenure, Musk and Trump continued to display an intimate relationship, with Musk frequently appearing at the White House, but Republican insiders grew increasingly critical of Musk, making his government position increasingly awkward.
After 130 days, Musk announced his resignation from government duties, but internal sources suggested that Musk had hoped to continue in the position but was rejected by Trump.
Their relationship then rapidly deteriorated, with the conflict publicly erupting on June 5th. The trigger was Musk's strong criticism of Trump's "Great and Beautiful Act", which expanded tax deductions and increased border enforcement and military spending while reducing Medicaid, food assistance, and clean energy tax credits. Musk's core argument was that the bill would further expand the deficit and increase the U.S. debt burden.
The House passed this trillion-dollar Republican bill last month by a one-vote margin. Musk hoped to leverage congressional members with similar opposing views to push for significant modifications to the bill.
The Senate is currently reviewing the bill, aiming to deliver it to the President's desk by July 4th. Republicans hold a 53-47 majority in the Senate, with two Republican senators explicitly opposing the bill: Rand Paul from Kentucky and Ron Johnson from Wisconsin. Mike Lee from Utah and Rick Scott from Florida have reservations, while Lisa Murkowski from Alaska, Susan Collins from Maine, and Josh Hawley from Missouri have doubts about other parts of the bill. If just two more senators switch sides, the bill could fail in the Senate.
Johnson stated that Musk's stance strengthened the opposition's confidence:
"I think this is indeed effective - at least for me, it reinforces our position that we must address this issue. I didn't want to be that 'grain of sand', but now I must be the sand that stimulates the pearl."
The Congressional Budget Office estimated on Wednesday that the bill would increase the deficit by $2.4 trillion over the next decade.
The outcome of this dispute between Musk and Trump is now tightly linked to whether the bill will ultimately pass, highlighting the tension between business interests and political decisions in U.S. policy-making. Undoubtedly, the dissolution of what once seemed like an unbreakable alliance will cause greater shockwaves in U.S. political and business circles for a long time to come.
