Back and forth bickering between Elon Musk and former President Donald Trump has already sparked a political and financial tempest that wiped $27 billion off his net worth. Not only did Tesla stock get rattled by the clash, but the clash also exposed just how quickly support could evaporate from Republican allies that were previously seen as reliable.
Musk has recovered from this high-profile fallout politically isolated and financially wounded, even though he still tops the Forbes Real Time Billionaires List with an estimated $388 billion. Trump has made public his criticism of his recent tax and spending bill, which provoked a thunderous backlash in the GOP and a swift erosion of his power in Washington.
Tesla stock plunges as political tension rises
Escalating the situation, Musk attacked Washington on multiple fronts including calling Trump’s fiscal legislation a disaster to the dismay of Trump and House Republicans. The backlash against Musk’s comments grew with the billionaire’s follow up comments which included calling for Trump’s removal from office. The slump in Tesla shares added to one of the most considerable single-week losses Musk has ever endured. Anxiety in the market and political uncertainty, would hit the estimated $27 billion.
Musk responded by threatening to cancel key government contracts tied to his ventures which triggered the latest outburst from Trump. Then Musk tried to obscure criticism by claiming he had helped Trump to victory in the 2024 election. Eventually this claim did not get any traction and instead fuelled the tension further. Later, however House Speaker Mike Johnson denied that Musk had any influence in the 2024 outcome, saying that Trump was the only person who deserved credit.
Republicans withdraw support following feud
Musk’s GOP figures were quick to distance themselves from him. Texas Representative Troy Nehls said Musk had lost his mind and asked him to stop attacking. Tim Burchett and Jim Banks, other Republican lawmakers, also had issues with Musk’s actions. Musk’s wealth no longer has political weight, said Burchett. In the same statements, however, banks acknowledged Musk’s previous contributions, but said the Senate would work with those changes to the bill in its own right.
House Speaker Johnson referred to Musk as a friend but made it clear that Musk’s opinions did not affect any votes. Only a few Republicans, Thomas Massie, Warren Davidson, and David Schweikert, supported Musk’s stance on the bill.
Musk’s Washington influence takes a serious hit
The flare up came as Musk, who has already raised the ire of the White House when it previously cut his associate, Jared Isaacman, out of consideration for the NASA chief, tried to bring some levity to the situation. Then, there were changes in the tax bill that further strained EV credits. It was unfortunate and it was a clash of strong personalities, said Florida Representative Aaron Bean, who added that he stopped trying to be neutral when he received family calls asking him to stand with those worried about gay students getting hurt. Musk’s influence in Washington now looks to have been considerably diminished despite some calls for reconciliation.