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Elon Musk Apologises After Feisty Online Feud to Save Tesla’s EV Tax Lifeline 

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Elon Musk Apologises After Feisty Online Feud to Save Tesla’s EV Tax Lifeline 

For a man known for defying convention and wielding social media like a cudgel, Elon Musk’s sudden and complete retreat from a high-profile feud with President Donald Trump is a jarring reversal. But when billions—and the future of Tesla—are on the line, even the world’s richest man can fold like a pack of cards and apologise publicly

Just days ago, Musk had launched into an online tirade against Trump’s proposed tax and spending bill, calling it a “disgusting abomination.” The feud quickly escalated, with Musk suggesting Trump should be impeached and hinting at forming a new political party—one that could have splintered Republican unity ahead of the 2026 midterms. Musk also claimed that Trump was in the Jeffrey Epstein files, a charge he’s since deleted without explanation. 

Fast-forward a week, and Musk was publicly walking it all back. “I regret some of my posts about President Donald Trump last week. They went too far,” he posted on X, his own social platform. His most inflammatory posts vanished quietly. Left unsaid, but clearly implied: Musk now needs Trump. 

The about-face follows intense behind-the-scenes pressure from Trump’s camp. Vice President JD Vance, Chief of Staff Susie Wiles, and Trump’s longtime confidant David Sacks—all reportedly worked to smooth things over. Their goal: ensure Musk was “publicly and privately supporting the president’s agenda.” 

But this isn’t just about political harmony—it’s about money. Tesla is fighting a proposed rollback of the $7,500 EV tax credit, a key incentive that boosts demand for electric cars. Musk once decried the credit, arguing it distorted the free market. “Take away the subsidies. It will only help Tesla,” he wrote in 2023. 

But Tesla’s financial reality has changed—dramatically. The company is reeling from its worst-ever quarterly performance, with a 71% plunge in net income and its first drop in annual sales. Musk’s rightward political turn has alienated core buyers in Europe, California, and China. The brand that once symbolized progressive, climate-conscious innovation now finds itself associated with far-right politics and a sales slowdown that is alarming. It’s not as if the EV market is shrinking; it grew even as Tesla’s sales contracted

In this new environment, the $7,500 EV tax credit is no longer optional—it’s essential. The Biden-era credit, while aimed at promoting clean energy adoption, became a vital lever for sustaining consumer demand amid falling sales and rising competition from both legacy automakers and Chinese EV giants. 

Now, under the Republican-led “Big Beautiful Bill,” Tesla—and only Tesla—is poised to lose access to that credit. That’s a gut punch. JPMorgan estimates the loss could cost Tesla $1.2 billion annually

So, Musk, the libertarian iconoclast, finds himself publicly aligning with Trump, the very man he’d just accused of corruption and excess. The pivot is as political as it is personal. Trump has made no secret of his irritation with Musk’s outbursts, warning there would be “serious consequences” if the billionaire backed Democrats or opposed Republican priorities. For Musk, those consequences could include not just lost credits, but increased scrutiny of Tesla’s autonomous vehicle ambitions—an area where federal regulators already hold enormous sway. 

Tesla’s future hinges on robotaxis and a fully driverless fleet, but federal approval is far from assured. A hostile White House could slow or stall those efforts. Similarly, Musk’s other ventures—SpaceX and Starlink—rely heavily on government contracts and favorable regulatory treatment. Picking a fight with the most powerful man in the world is not just bad optics—it’s bad business. 

Analysts now see Musk’s conciliatory tone as a strategic, if cynical, maneuver. “The stakes between the richest man in the world and leader of the most powerful nation in the world are just so big,” said Shawn Campbell of Camelthorn Investments. “This is about survival.” 

Indeed, Musk’s financial empire is deeply intertwined with political power. In 2024, he donated nearly $300 million to Republican campaigns, helping secure Trump’s return to the White House and a GOP-controlled Congress. For a brief moment, it looked like Musk might become a kingmaker—or even a king. 

But politics is transactional. When Musk threatened Trump’s agenda, the backlash was swift and coordinated. What we’re witnessing is not just a feud resolved, but a hierarchy reinforced. Even the billionaire rebel, it turns out, has pressure points. 

That’s why the apology wasn’t just about decorum—it was about direction. Musk deleted posts, toned down the rhetoric, and started echoing Trump talking points about fiscal responsibility, all while he perhaps quietly lobbying to keep Tesla’s subsidies intact. 

It’s a stark reminder that in today’s America, even titans of industry must kneel before the throne when their fortunes depend on government favor. Musk may have once believed Tesla didn’t need help from Washington. But with tumbling demand, stiff competition, and a brutal market correction, he now needs every bit of it. 

His critics call it hypocrisy. His defenders call it pragmatism. But one thing’s clear: when power meets power, it’s often the one sitting on the throne that all bow before.