After the Trump-Musk break-up: five takeaways

These are men with extraordinary achievements — Trump made a phenomenal comeback that made history in the US and the world; Musk, with a net worth of $420 billion, has his footprint in industries from tech to space, social media to electric mobility.

Very nasty, very public

Their very nasty, very public, breakup drama started in the Oval Office, where Trump met with German Chancellor Friedrich Merz.

“I’m very disappointed in Elon,” Trump told reporters in his first public comments about Musk’s social media tirade against his “big, beautiful bill.” “Whatever,” Musk quickly replied on X.

Trump said on Truth Social that Musk “just went CRAZY” over electric vehicle tax credits, and he threatened to cancel Musk’s federal contracts.

Musk has tweeted about Trump or the bill more than 40 times since Thursday night (in India). “Without me, Trump would have lost the election,” he wrote, slamming Trump’s “ingratitude.” He also agreed with a user who said Trump should be impeached and removed from office.

Aspects of the relationship

Their relationship led to some very consequential changes that will have a deep and lasting impact.

FIRST, it was Elon Musk’s social media platform X that really amplified the right-wing messaging for Trump in his election campaign. The MAGA base got a platform and a voice on social media, which is almost irreversible in many ways. Conversations on X have moved to the right-wing space to a greater extent than they had ever been.

SECOND, Trump’s faith in Musk’s managerial abilities led him to hire the billionaire for a massive exercise to cut government costs, and he was appointed head of Department of Government Efficiency (DOGE).

Some of the US government’s largest organisations, including USAID, which had billions of dollars of social impact projects across the world, were disbanded. Health, education, and environment projects across some of the most under-developed and impoverished parts in Asia and Africa have folded up, and children have been deprived of medicines.

THIRD, the fight between the two men may have an impact on the relationship between the US administration and Musk’s businesses, which includes the space and tech sectors.

The rupture between the US government and SpaceX — whether it’s Trump following through on threats to cancel contracts or Musk following through on threats to yank important technology to international space stations — could have real implications in the space sector.

Similarly, how the break will impact the electric vehicle market, if the support to the sector is withdrawn, could also be an important element.

FOURTH, a lot of global leaders had been engaging with Musk as a proxy for Trump in the last four months. He had sat in on some of the early phone calls between the new President and world leaders. He had Zoom calls with Nepal PM K P Sharma Oli, and calls with Bangladesh interim government’s chief advisor Prof Muhammad Yunus.

Since Trump had disrupted the institutional structures in the White House and the administration, global leaders were engaging with Musk in the hope of breaking into Trump’s orbit and gaining some influence. With Musk’s departure, those investments and the influence has gone.

FIFTH, for India, Musk was an important and influential voice when it came to skilled professionals entering the US. He had been a staunch votary of the H1B visa-holders, of which 70 per cent are Indians.

Musk had even taken up the cudgels and the fight against the far-right MAGA base on this issue early on — much to New Delhi’s comfort. That support has gone, although Trump too is supportive of the US granting visas to skilled professionals.