Despite Musk's Attempt at Crisis Management, Trump Is in 'Cut-Off' Mode: "It's Over With Him"

Source
Korea Economic Daily

Summary

  • As the relationship between President Trump and CEO Elon Musk broke down, it was reported that there is increasing interest in whether Musk-owned companies such as SpaceX can continue public sector operations.
  • President Trump warned that if Musk engages in political maneuvers such as supporting Democratic Party candidates, he will face serious consequences.
  • It was reported that the US government has contacted other private space companies such as Rocket Lab and Blue Origin following the conflict between Trump and Musk.

Relationship falls apart after impeachment support remarks… Musk attempts to defuse by deleting comments

"There will be consequences if you support the Democrats"… Trump publicly warns

WP: "Relationship breakdown was only a matter of time"… Internal backlash accumulated

Musk: "SpaceX will continue"… Trump: "Not revoking contracts"

President Donald Trump has declared that his relationship with former close associate Elon Musk, CEO of Tesla, is over. Although Musk tried to contain the situation by deleting his own social media comment supporting the impeachment of President Trump, Trump has maintained a tough 'cut-off' stance.

On the 7th (local time), in a phone interview with NBC News, President Trump was asked if he was willing to mend relations with Musk. He answered, "No," and when asked if it was fair to say the relationship was over, he replied, "Seems that way." He added, "I'm too busy with other things," and drew the line, saying, "I have no intention of speaking with him."

President Trump strongly criticized Musk, saying that Musk had "acted rudely toward the presidency," calling it "a very bad thing." He issued a warning that if Musk, the CEO who opposed the tax and spending bill Trump was pushing, supports Democratic Party candidates to induce the defeat of Republican lawmakers who voted for the bill, "there will be very serious consequences."

During the presidential election, Musk gave Trump unwavering support, including financial backing for his campaign. After Trump's second administration began, Musk was appointed head of the Department of Government Efficiency (DOGE), leading a large-scale government restructuring effort as a key figure. However, cracks began to appear when Musk publicly voiced opposition to Trump’s tax cut plan.

On the 5th, at a summit with the German Chancellor, President Trump publicly criticized Musk, saying he was "very disappointed" in him, while Musk responded by expressing support for Trump's impeachment on social media. According to the Washington Post (WP), Trump referred to Musk as a "major drug addict" during a call with aides on the same day and suggested that Musk's behavior may have been influenced by substances.

The WP reported that although the public confrontation sealed the end of the Trump-Musk relationship, in fact, the rift had been deepening for some time. Within the White House, discontent had been growing over Musk’s unilateral approach to policy, and President Trump himself had begun to distance himself, with the conflict erupting recently. The decisive factor reportedly came last February, when the Musk-led DOGE sent an email to all federal employees demanding they report "five achievements from the past week." Even high-ranking officials were not informed in advance, causing a major stir in the administration.

Concerns have been raised that this conflict may have a real impact on Musk’s business activities. US government agencies such as NASA and the Department of Defense have begun searching for alternatives to SpaceX, Musk's space exploration company. According to the WP, after the Trump-Musk clash, US government officials contacted private space companies like Rocket Lab, Stoke Space, and Blue Origin. It was reported that they checked the technology development stages and potential government deployment timelines for each company.

On the 7th, Musk deleted the controversial comment and announced that SpaceX would continue participating in NASA projects, making efforts to calm the situation. President Trump stated that although he would have the authority to terminate contracts the federal government has signed with companies owned by Musk, such as SpaceX, "I'm not considering such actions."

Reporter Da-yeon Lim allopen@hankyung.com

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Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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