1. The core issue of mutual tearing is that Old Ma truly believes that U.S. national debt has become a chronic problem. With the intention to reduce its scale, government spending cannot increase; otherwise, the problem will remain unsolved as one side diminishes while the other grows. The Great Beautiful Act not only failed to reduce the deficit but also significantly increased it, making the national debt a burden that the American people may not be able to bear. Musk believes that with the current trend, interest on national debt will cover the government budget, making it impossible to fund defense and people's livelihoods in the future.
He was the first to join Trump's camp to support the campaign, then took office for DOGE efficiency reforms, and then started opposing the Beautiful Act last week. All his reasons and motives stem from this, and it can be seen that he is genuinely an idealist.
2. After Musk left DOGE, Trump quickly withdrew the nomination of Isaacman as NASA director last week. Isaacman is a billionaire entrepreneur and a close ally of Elon Musk. This decision sparked discussions about the future leadership direction of NASA, especially in the context of budget cuts and adjustments to space policy.
The reduction of tax incentives for electric vehicles in the Great Beautiful Act directly impacts Tesla's economic interests. Old Ma has already suffered significant financial losses while working for DOGE. Returning to the company, his primary goal must be to boost Tesla's stock price and performance. The act has become a thorn in his side.
3. Therefore, all of the above has led to Old Ma's extreme dissatisfaction with the Great Beautiful Act, which has resulted in him criticizing the act until Trump responded, leading to direct mutual tearing. Of course, it can also be said that Musk's criticism of the act leaves a foreshadowing for future reckoning. It allows him to shed responsibility while drawing a clear line to signal a shift in political stance.
On the other hand, both Trump and Old Ma are big mouths who say whatever displeases them outright. This personality will inevitably lead to an escalation of their verbal disputes, starting with mutual exposure of flaws.
It's somewhat like 'What are you looking at?' 'What about you?' 'Do you believe it? I'll hit you.' 'Really don't believe it? I'll hit you back.' Gradually, both of them got worked up.
4. What are the implications?
In the short term, further escalation will deepen the damage to the U.S. political and business relationships. In the U.S., capital and political ambition are inextricably linked, and previously, political leaders rarely publicly quarreled with their strong supporters. There are disagreements, but they are usually quiet. If macro uncertainties continue to increase, it will deepen the turmoil in the capital markets. In fact, this is also unfavorable for the Republican Party, as major donors will be very cautious in supporting Republican fundraising.
As for the claim that Old Ma will be on par with 'Shen Wansan and Hu Xueyan,' the difference here is that merchants in a feudal system have no voice. Under the U.S. political system, Old Ma carries a significant public opinion base (public opinion is the source of power), which can influence a considerable number of people, something that all parties cannot ignore. Of course, while avoiding open attacks is easy, it is difficult to defend against covert strikes from violent machines.
5. How do we see the future?
The entanglement of interests between both sides is still deep, and there are strong intermediaries. In the short term, after both sides have been stirred up, they might calm down and gradually ease tensions. We will see if strong intermediaries can come out to mediate. Bill Ackman and Naval have already stepped in to openly mediate; we just have to wait and see when the most powerful man, Peter Thiel, will take action.
