On Tuesday, White House AI czar David Sacks weighed in on the growing rift between President Donald Trump and Tesla Inc. TSLA CEO Elon Musk, expressing hope for a future reconciliation.
What Happened: In an interview on CNBC's "Money Movers," Sacks addressed the public fallout between Trump and Musk, who were once seen as political allies.
"I work for the president, and Elon's a good friend," Sacks said, adding, "I do believe that Elon's objectives politically can be achieved and can best be achieved through the Republican Party. I hope to convince him of that one day."
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Why It's Important: The remarks follow Musk's push to form a third party, the "America Party," after a bitter disagreement with Trump over the "One Big Beautiful Bill," a sweeping tax and spending proposal.
Musk slammed the legislation as fiscally reckless, prompting a series of personal attacks from Trump. Musk responded by calling for Trump's impeachment and referencing unsubstantiated ties to Jeffrey Epstein.
The tech mogul later apologized and deleted certain comments. However, the ongoing feud between the two is far from over.
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Once a prominent supporter of Trump's 2024 campaign, Musk's political ambitions have alarmed investors and drawn sharp criticism from Wall Street analysts. Dan Ives of Wedbush warned that Musk can't lead Tesla while launching a political movement.
The escalating feud has potentially wide-ranging implications. Trump's administration has signalled tougher oversight for autonomous vehicle technologies, a move that could hit Tesla's Full Self Driving and Robotaxi initiatives.
Trump's pick for the National Highway Traffic Safety Administration, Jonathan Morrison, is expected to testify in the Senate in favor of tighter regulation.
Additionally, budget cuts proposed by the Trump administration could slash key revenue streams for EV makers, including zero-emission vehicle credits.
Despite the tensions, Sacks suggested a path back. "I hope there'll be a reconciliation," he said. "They were once very good friends, and I hope they will be again."
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