WASHINGTON (BN24) — Elon Musk walked back scathing remarks he made about President Donald Trump last week, signaling a truce in a public feud that had unsettled both Wall Street and Washington. But despite Musk’s conciliatory tone, questions linger over whether the uneasy peace between the world’s wealthiest businessman and the world’s most powerful leader will hold.
“I regret some of my posts about President @realDonaldTrump last week. They went too far,” Musk wrote Wednesday on his social platform X. The Tesla and SpaceX CEO’s remarks followed a series of pointed exchanges with Trump, whom Musk had sharply criticized over a sweeping tax-and-spending package, which he called a “disgusting abomination.”
The dispute rapidly escalated, with Musk suggesting Trump should be impeached and floating the idea of forming a new political party. For Musk’s sprawling business empire — from electric cars to satellite internet — the confrontation carried significant risks. Several of his companies, including Starlink, rely heavily on U.S. government contracts and regulatory approvals.
Musk’s change in tone followed outreach from top White House officials, including Vice President JD Vance, White House Chief of Staff Susie Wiles, and Trump adviser David Sacks, who is also a longtime friend of Musk. Sources familiar with the matter said the administration was concerned about the rift’s potential fallout ahead of the 2026 midterm elections.
While Musk deleted several contentious posts — including one endorsing Trump’s impeachment — he did not retract his criticism of the legislation. The billionaire entrepreneur had given nearly $300 million to Republican campaigns during the 2024 cycle, a cash infusion that helped propel the GOP to sweeping victories in the White House and Congress. He had also briefly led Trump’s federal cost-cutting initiative before stepping down in May.
Musk’s change of heart reportedly followed a direct conversation with Trump on Monday. White House Press Secretary Karoline Leavitt confirmed the two had spoken and said the president appreciated the outreach. She dismissed rumors that the administration was reviewing Musk’s federal contracts in response to last week’s tensions.
Tesla shares were marginally lower Wednesday, having recouped some ground lost during the public spat. The stock remains down 19% year-to-date, shedding roughly $300 billion in market capitalization. Analysts attribute the downturn partly to declining sales in key markets including Europe, China, and U.S. states such as California, where consumers have grown wary of Musk’s increasingly partisan posture.
The entrepreneur is staking Tesla’s future on autonomous vehicle technology, including plans to mass-produce robotaxis without steering wheels or pedals. That ambitious vision will require regulatory approvals from the U.S. Department of Transportation — approvals that could face heightened scrutiny amid political friction with the White House.
“Musk’s recent conciliatory remarks may reflect a broader effort to safeguard his business interests,” said Mamta Valechha, a consumer discretionary analyst at Quilter Cheviot, a Tesla shareholder.
Shawn Campbell, an adviser at Camelthorn Investments and Tesla investor, said Musk and Trump might repair their working relationship but doubted it would ever return to its prior closeness.
“The stakes are enormous — billions of dollars in contracts and sweeping regulatory authority. Both men know what’s on the line,” Campbell said.
Trump made clear Saturday that their relationship had fractured. He warned of “serious consequences” if Musk chose to fund Democratic challengers to Republican lawmakers who supported the controversial tax bill. Despite this, a top Trump aide called one of Musk’s advisers to thank him for encouraging a reconciliation, sources said.
For now, Musk appears to be seeking a de-escalation. But with the 2026 midterms looming and policy decisions affecting everything from electric vehicles to satellite networks on the table, the relationship between Trump and Musk remains one of the most consequential — and fragile — alliances in American politics.
