Your ultimate authority for daily Elon Musk news. Exploring the world's biggest ideas with your host Will Walden. There's something new everyday. The President of the United States has just threatened a private citizen. Donald Trump told Elon Musk to expect very serious consequences if he funds political candidates that Trump poses now. This threat didn't come through a leak or some sort of back channel message.
That came directly. From the president himself during a phone interview with NBCS Kristen Welker Now. That message followed a series of public jabs between the two men, revealing a larger question. What happens when the president? Donald Trump. Threatens to retaliate against a private citizen for political donations. Trump's threat wasn't vague, though. In a Thursday post, he suggested cutting off federal contracts and subsidies to Musk's companies as a budget saving measure.
That post followed Musk's public criticism of the GOP's latest budget legislation and his call to vote out incumbents in 2026. Elon also followed the idea of launching a new political party to represent the 80% in the middle. Trump responded within days, warning that if Musk backs Democratic candidates in the midterms, he'll suffer unspecified consequences now. The president didn't explain what those would be, but insisted they'd be very serious
now. Musk donated at least $288,000,000 to support Trump and other Republicans during the 2024 election cycle, according to campaign finance reports that some made him the most influential financial backer in GOP circles last year. Now his abrupt threat to redirect support away from the party or possibly fund third party or Democratic candidates has triggered Donald Trump's escalated warnings. Now, the message that Donald Trump is sending is that loyalty is transactional, and switching
sides comes with penalties. Trump's tactics have created unease even among some of his political allies. Federal subsidies have played a major role in sustaining Musk's companies. SpaceX receives billions through NASA contracts, and Tesla benefits from energy credits and tax incentives tied to its EVs. Now, cutting those off would have tangible effects on operations, investors and jobs. The threat was targeted directly to Elon Musk and his finances
and his businesses. In a private discussions with donors, Trump has emphasized his preference for transactional politics. Sources familiar with the situation say that Trump views financial loyalty as a cornerstone of his political machine. That makes Musk's dissent unusually dangerous.
In Trump's view, Musk, who once boasted of being a free speech absolutist, has found herself caught between asserting political independence and preserving access to government resources for him and also his companies. Now, the dynamic matters to everybody. Beyond personal grudges. Tech, CE, OS and federal officials are always navigating a new era of policy influence.
Right now, where access and funding increasingly depend on personal relationships rather than traditional lobbying or merit, It looks like handshake deals are. Happening. Throughout Trump's administration, Musk had enjoyed a period of influence under Trump, including friendly meetings and favorable public comments staying at Trump's estates. Now that influence is completely gone. It's evaporated. Other tech leaders see this as an opportunity to fill the void, though.
Executives of companies like Palantir and Andrill, both heavily defence focused, see a pathway to gain favor with the administration. Industry sources say these firms are already increasing the federal lobbying efforts, giving more and more money and positioning themselves as alternative to Elon Musk. Now. Mehta's leadership has also shifted its political tone, aligning more closely with Trump's rhetoric in recent
months. Musk's misstep could create room for new favourites of Trump to emerge now. Musk's standing at Silicon Valley had already begun to erode due to his erratic public statements and inconsistent business focuses recently. And while respected for engineering successes and managing Tesla and SpaceX, he's frustrated partners and investors with unpredictable
behaviour and unkept promises. And losing Trump's favor could further isolate him, especially if his corporate empire becomes the target of scrutiny for Trump's administration. One consequence of this view is a potential change in US space policy. SpaceX currently dominates government satellite launches and space logistics, and federal agencies begin to shift contracts toward Blue Origin. Whose Jeff Bezos his space venture could benefit
handsomely. Sources familiar with NASA's current contract review process say the agency exploring ways to diversify launch providers and lighted political risk associated with single vendor dependency, such as SpaceX. Now open AI, who of course Elon has been warring with for a while. Sam Altman stands to benefit from the political fallout as well. Although Altman has his own ongoing feud with Elon Musk, he's navigated the post election power structure with more
discretion. He repurposed a large scale data center initiative as a federal infrastructure project and secured a White House photo op shortly after Trump's inauguration. His strategy earned him credibility inside the administration without attracting Musk style controversy. Now, the silence from other tech leaders speaks volumes. Here, most prefer to avoid choosing sides in the political feud that could affect federal contracts and our trust actions
or export licenses. Many executives are quietly hopeful that Musk's departure from Trump's inner circle will ease policy negotiations and create a more predictable business environment for their companies. Now, the administration's treatment of Musk reveals how Trump views power and loyalty, sees wealth and influence as useful tools when they serve his political goals, and his liabilities when they don't serve him anymore.
Musk helped fuel the Republican campaign in 2024, but in 2026, that might not be enough to shield him from Donald Trump's retribution. Trump's message is very blunt. You can fund the opposition, but it will cost you. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it.
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