Last weekend, U.S. President Donald Trump and Tesla founder Elon Musk directly tore into each other. The dispute began with Musk criticizing Trump's "big and beautiful" tax law on the social platform X, and then further claiming that Trump's name appeared in documents related to human trafficker Jeffrey Epstein, causing a huge uproar.
Trump was equally unrelenting, publicly hitting back at Musk, accusing him of having "Trump Derangement Syndrome" and threatening to terminate government contracts with Musk's companies, causing Tesla to briefly plummet.
Relationship Easing: Musk Apologizes, Trump Sends Reconciliation Signal
However, this intense public dispute showed clear signs of easing yesterday. Musk publicly apologized on the X platform, stating that his comments about Trump were "over the top" and expressing regret for some of his posts.
Meanwhile, Trump told the New York Post that while he was disappointed with Musk's criticism, he was willing to consider reconciliation, saying "these things happen, and I don't blame him".
Vance's Behind-the-Scenes Mediation
Notably, according to the Wall Street Journal's report yesterday (11th), Musk's quick admission of fault may be related to the intervention of Vice President JD Vance and White House Chief of Staff Susie Wiles. Sources revealed that after Musk and Trump's public heated argument, Vance and Wiles urged Musk to repair his relationship with the president during a phone call last Friday.
The report points out that Vance remained low-key in this dispute, supporting Trump but avoiding publicly criticizing Musk, successfully playing a mediating role. As Vice President, Vance positioned himself as both Trump's attacker and problem solver, demonstrating his flexibility in political circles.
Musk's Political and Commercial Considerations for Backing Down
However, analysts point out that behind Musk's choice to back down, in addition to Vance's mediation, there are likely deeper business and political considerations.
First, SpaceX, founded by Musk, has signed long-term contracts worth billions of dollars with the U.S. government, especially with the Department of Defense and NASA. These contracts are crucial to SpaceX's operations and development. Continuing to openly confront Trump, who has significant political influence, could potentially risk these key businesses and impact Musk's business empire.
Secondly, Musk served as a key advisor in the "Government Efficiency Department" (DOGE) during Trump's first term, establishing extensive connections in Washington's political circles. These political and business relationships are strategically significant for his long-term development in electric vehicles, autonomous driving, space exploration, and artificial intelligence. Despite his dissatisfaction with the tax law, Musk chose to be forbearing to avoid damaging his relationship with the Republican Party.
Tesla Stock Rebounds
Influenced by Musk's backing down and Trump's softened stance, Tesla's stock has already recovered from the previous decline caused by their falling out, with the stock price returning to near $330 at the time of writing.
