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Tesla’s decline and differences over public spending mark the end of a strategic alliance

The idyll between Elon Musk and Donald Trump seems to have come to an end. Two pieces of news in particular confirm what appears to be a real break: on the one hand, the sharp decline in Tesla sales in Europe, down 50% in April compared to the same month in 2024; on the other, the entrepreneur’s explicit criticism of the spending bill promoted by the Republican president, in direct contrast to the mission of the Doge, the department created to ensure government efficiency.

The rift is deep and has economic rather than ideological roots. For months, Musk has been paying the price for his closeness to the Republican leader, between damage to his image and financial repercussions, at a time when Tesla is struggling to maintain its leadership in an increasingly competitive automotive market. Beyond the rhetoric, in fact, Trump’s permanent election campaign no longer seems to offer concrete benefits to Musk, who now looks with concern at the balance of his industrial and technological empire.

The South African-American entrepreneur’s change of course seems inevitable: remaining at the president’s side is no longer a profitable proposition. And if Musk is distancing himself for strategic reasons, the growing embarrassment of Trump, who after benefiting from the Tesla boss’s support during the campaign, now finds himself isolated by a figure who has become too cumbersome even for him, makes the distance even more visible.

In fact, as the months have passed, Musk’s protagonism has ended up destabilising the executive’s communication and cohesion. His impromptu attacks on social media, often outside of any political coordination, have hampered the administration’s work, accentuating internal friction. Even Trump himself, a master at managing chaos, has found himself dealing with an ally who hogged media attention, imposing tones and priorities.

A relationship that, although marked by common interests, no longer stands up to the test of economic and institutional reality. Musk has chosen to save Tesla and his empire from the instability he perceives to be linked to Trump’s policies. Trump, for his part, will now have to do without the symbol of the American tech economy, who has gone from being an ally to a destabilising factor.

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(Source and photo: © AndKronos)

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