Markets to Triumph in Musk-Trump Dispute
Casual Take:
Hey there, mate! City AM columnist, Rainer Zitelmann, ain't no stranger to predicting drama between Elon Musk and the former president, Trump. He's spilled the tea to L'Express, and it's a wild ride!
Q: So, you called it way back that Musk and Trump wouldn't see eye-to-eye. What tipped you off?
A: I've been following these two heavyweights for years, mate. I know Trump hates anybody who doesn't kiss his ring, but Musk ain't one to bend over backward for anyone. Also, Trump's all about tariffs, while Musk is a proponent of light taxes, less government spending, and economic freedom.
Q: What's the deal with Tesla's shares falling after Musk's criticisms of Trump's tax bill? Did Musk flub it with his political adventure?
A: It's a tough one, mate. But let's face it, Musk takes big risks and reaps the rewards, most of the time. Whether he'll come out on top against Trump is a toss-up, 'cause while Musk is a business shark, Trump's got more political media savvy. If Musk had a burning desire for power, he'd skip the US and head to China, who'd be all over him. Or, if the EU weren't so stupid, they'd offer Musk a sweet deal to bring SpaceX to Europe.
Q: How bad would it be for the US if they lost SpaceX?
A: Without SpaceX, the US ain't got much going on in space these days. Before SpaceX, they couldn't even send their own astronauts to the ISS and had to hitch a ride on outdated Russian rockets. In 2024, SpaceX had 134 launches, making them the heavy hitter in space missions worldwide. China was a distant second with 68 launches.
Q: What did you think of Musk calling Trump's funding bill a "disgusting abomination"?
A: Spot on, mate! Not because of the tax cuts—those are great!—but because Trump's funding bill ramps up the national debt even more. Musk must be absolutely furious. He's bailed on his companies for months to help the U.S. government reduce the national debt, and then Trump floods the market with more borrowing.
Q: Any thoughts on Trump's escalating protectionism or immigration?
A: It's hard to say, mate. If Steve Bannon's anti-capitalist agenda won the internal GOP battle, it'd be a disaster for the U.S. Musk backs political and economic freedom, while Bannon's all about protection and isolationism.
Q: You worried about the U.S. economy?
A: Yeah, definitely. Trump keeps selling Americans on this fake "Golden Age" that protectionism will bring, but it's just hogwash. Literally no country has ever become rich through protectionism. Instead, they've suffered economically because of it. I've got my fingers crossed that the capital markets will be strong enough to force Trump to change course.
Dr. Rainer Zitelmann is a German historian, sociologist, and author. His latest book is "The Origins of Poverty and Wealth"
- Rainer Zitelmann, an expert on Elon Musk and Donald Trump, believes that Musk's opposition to tariffs and support for light taxes aligns poorly with Trump's protectionist policies.
- The columnist also noted that Tesla's shares saw a downturn after Musk's criticism of Trump's tax bill, indicating potential challenges for Musk in navigating political landscapes.
- In the realm of space exploration, Zitelmann emphasized the significance of SpaceX's 134 launches in 2024, making it the global leader in space missions, with China a distant second with 68 launches.
- Musk publicly criticized Trump's funding bill as a "disgusting abomination," mainly due to its impact on increasing the national debt.
- Zitelmann expressed concern over Trump's escalating protectionism and immigration policies, cautiously predicting that a win for Steve Bannon's anti-capitalist agenda would be detrimental to the U.S. economy.
- The German historian voiced his worry about the U.S. economy under Trump's administration, believing that protectionist policies could lead to economic decline, and hoping that the capital markets would compel Trump to reconsider his approach.
