Name: WSJ Washington Coverage Chief Explains Why the Trump-Musk Relationship Unraveled
Uploaded: 2025-06-06T00:25:00Z
Duration: 2 min 53 s
Description: President Trump and billionaire Elon Musk’s relationship unraveled in real time, with both men publicly trading barbs for hours. WSJ’s Washington Coverage Chief Damian Paletta explains what’s at stake for two of the world’s most powerful men.

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President Trump and billionaire Elon Musk’s relationship unraveled in real time, with both men publicly trading barbs for hours. WSJ’s Washington Coverage Chief Damian Paletta explains what’s at stake for two of the world’s most powerful men. Photo: Allison Robbert/Getty

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President Trump and billionaire Elon Musk’s relationship unraveled in real time, with both men publicly trading barbs for hours. WSJ’s Washington Coverage Chief Damian Paletta explains what’s at stake for two of the world’s most powerful men.

WSJ Washington Coverage Chief Explains Why the Trump-Musk Relationship Unraveled

When Elon Musk and Donald Trump turned on each other, Thursday, we saw in real time an incredibly messy public divorce. And we don't know where it's headed next.

But I'm very disappointed in Elon, I've helped Elon a lot.

It's possible this could sink the huge tax cut package of 2025. It's also possible that this could do extreme damage to Musk's companies, including Tesla, which saw stock fall tremendously. And it could also do extreme damage to Trump who had a lot of leverage with Musk by his side.

Thank you, Elon.

Thank you, thank you.

Take care, you sir.

Just last week, Donald Trump and Elon Musk embraced in the White House and wished each other luck as they departed after several months with Elon Musk by Trump's side during the beginning of the second Trump administration. They had had a huge impact together, dismantling numerous agencies and attempting to cut spending.

And I'll continue to be visiting here and be a friend, an advisor to the president.

Just a few days after Musk leaves the White House, we have a spectacular public messy blowup between these two men with Musk accusing Trump of being part of the Jeffrey Epstein criminal conspiracy, and Trump accusing Musk of demanding all sorts of subsidies for Tesla in exchange for his support on a big legislative package. There are two central planks of President Trump's economic plan. One is the trade war that we're all quite familiar with. The second part of President Trump's economic plan is this big tax cut bill, which must pass by the end of this year in order to prevent taxes from going up on millions of Americans. Elon Musk has come out attacking that bill, calling it an audacious waste of government money, and also saying that it would explode the deficit. And it would grow the deficit by more than $2 trillion. Now, President Trump knows he has little margin for error if he wants only Republicans to pass this bill. The bill did pass in the House, but just by one vote. In a way, because Trump was twisting arms and getting Republicans across the finish line. But with Musk out attacking the bill, that's gonna make it very hard for maybe a dozen, maybe more Republicans to follow through, because now they've been called out for voting for a bill that would grow the debt and the deficit. President Trump never lets it go when someone comes after him publicly, he always has to punch back.

Elon's upset, because we took the EV mandate, and, you know, which was a lot of money for electric vehicles. And, you know, they're having a hard time, the electric vehicles.

There's many things that President Trump could do to damage Elon Musk and his companies. Obviously, there's SpaceX, there's X, which was formerly known as Twitter, there's Tesla. A lot of these companies interact with the government in different ways, and President Trump has shown a willingness, in many occasions, to unleash the government against his opponents.

Come here, Elon.

These are two men with huge egos, two men who are used to getting their way, and now, they're at each other's throats over the fate of this tax cut bill. Tremendous external pressure from someone like Elon Musk could crater the bill. That would be a huge problem for Republicans.

WSJ Washington Coverage Chief on How the Trump-Musk Relationship Unraveled

Video from around the world on the latest news developments, with insight from Wall Street Journal editors and reporters. 

WSJ Washington Coverage Chief on How the Trump-Musk Relationship Unraveled

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