Vance Calls for Truce in Trump-Musk Feud: Can Tesla’s CEO Rejoin the Fold?

• Vice President JD Vance urged Elon Musk, CEO of Tesla Inc. (TSLA), to reconcile with President Donald Trump following their public feud over a tax and spending policy bill, emphasizing the need to maintain their political alliance.
• Musk’s role in the Department of Government Efficiency has underperformed on its cost-cutting goals, and his social media clashes with Trump have raised concerns among political and financial observers.
• Vance, guided by Trump’s call for diplomacy, expressed loyalty to the president and hope that Musk would “come back into the fold,” highlighting the broader implications for the administration’s agenda and Tesla’s market positioning.

The high-profile alliance between President Donald Trump and Elon Musk, CEO of Tesla Inc. (TSLA), has been rocked by a public feud, with Vice President JD Vance urging reconciliation to preserve their shared political vision, according to a Bloomberg report. Musk, who played a crucial role in supporting Trump and Vance’s 2024 election victory, has been leading the Department of Government Efficiency, but the initiative has yet to deliver on its ambitious cost-cutting promises, adding strain to the relationship. The rift widened on Thursday when Musk publicly criticized a tax and spending policy bill endorsed by Trump, leading to personal exchanges on social media that have sent shockwaves through political circles in Washington and financial markets on Wall Street.

Vance, in an interview on the podcast “This Past Weekend w/ Theo Von” released on Saturday, emphasized his unwavering loyalty to Trump, stating he was “proud to stand beside him” and lauding the president for earning the trust of their movement more than anyone in his lifetime. However, he also expressed hope that Musk could “come back into the fold,” acknowledging the billionaire’s sharp criticism may complicate efforts to mend ties. Guided by Trump’s directive to adopt a diplomatic tone, as confirmed by an anonymous Bloomberg source familiar with the situation, Vance suggested that the president seeks to avoid a prolonged conflict, noting, “The president doesn’t think that he needs to be in a blood feud with Elon Musk, and I actually think if Elon chilled out a little bit, everything would be fine.”

The dispute underscores the delicate balance within the administration, where Musk’s influence as a tech titan and his role in shaping government efficiency are critical, yet his public disagreements with Trump risk undermining policy objectives. Tesla’s stock (TSLA) remains under scrutiny, as Musk’s actions often sway investor sentiment, particularly given his high-profile involvement in both corporate and political spheres. The broader implications of this feud extend to the administration’s ability to maintain cohesion among its key supporters, with Musk’s technological expertise and public platform seen as vital to advancing economic and efficiency goals. As Vance’s comments indicate, the path forward hinges on whether Musk and Trump can reconcile their differences, a resolution that could shape both the political landscape and Tesla’s market trajectory.

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