Scaramucci Sees Trouble Ahead for Musk-Trump Relationship: 'Everyone Flames Out With Trump'

The relationship between Elon Musk and Donald Trump, once seen as a powerful alliance, is now under scrutiny. Anthony Scaramucci, a former Trump adviser, has warned that Musk's alliance with Trump may soon "burn out." Scaramucci, who served a brief stint as Trump’s communications director, anticipates that Musk’s influence may be fleeting. "I’m giving him a six to eight month duration," he stated, indicating that Musk's close relationship with Trump might not last beyond that period.

Scaramucci's prediction is based on his own experience with Trump. He was dismissed from the White House after only 11 days in 2017 and has since become a vocal critic of Trump. "Everyone flames out with Trump," Scaramucci told Quartz. "He’s gonna burn you." He also added that he didn't believe it when other people gave him the same advice. "I would've said to those people: ‘No, no, no. He burns other people. He's not gonna burn me.' Then he burned me," he said.

Musk has been in close collaboration with Trump since the election, even unofficially heading the Department of Government Efficiency. His impact on federal policy has been noticeable, with Trump acknowledging Musk’s contributions in his first address to Congress. However, Scaramucci predicts that Musk’s influence may be fleeting. "I believe past performance is an indication of the future. And so there's nobody in Donald Trump's orbit that likes him," said Scaramucci. Scaramucci also called Trump an "angry guy" and "miserable" person.



The potential fallout between Musk and Trump could have significant implications for Tesla and its future dealings with the government. Musk’s influence has been instrumental in shaping federal policy, and a breakdown in this relationship could impact the company’s ability to navigate the political landscape. Furthermore, Musk’s substantial financial contributions to the Republican party highlight his commitment to the current administration, and a potential split could signal a shift in his political affiliations.

Tesla's stock has already experienced significant fluctuations due to Musk's political activities. For instance, on Monday, Tesla shares plunged by more than 11 percent, hitting their lowest point since before Election Day. This decline was attributed to falling sales and increasing protests over Musk's high-profile political role. The steep rise in Tesla shares that followed Donald Trump’s election has evaporated along with more than $700 billion in stock market value. Investors had hoped that Musk’s financial support for the Trump campaign and his ties to the White House would benefit Tesla, helping to clear regulatory hurdles to the company’s autonomous driving technology. Instead, Musk’s ubiquitous presence in Washington has proved to be a liability, with investors worrying that he has not been spending enough time managing Tesla when sales of the company’s cars are plunging.



The political backlash against Musk has been blamed for dismal sales numbers in Europe, including a 76 percent decline in Tesla sales in Germany, the continent’s largest car market. Musk has endorsed far-right parties in European countries, which has further exacerbated the situation. Analysts also attribute sales declines to a lack of new models and increasing competition. In January, Volkswagen sold more electric vehicles outside China than Tesla, according to figures published by SNE Research, a research and consulting firm in South Korea.

The potential fallout between Musk and Trump could also impact Tesla's ability to navigate the political landscape. Musk’s influence has been instrumental in shaping federal policy, and a breakdown in this relationship could impact the company’s ability to navigate the political landscape. Furthermore, Musk’s substantial financial contributions to the Republican party highlight his commitment to the current administration, and a potential split could signal a shift in his political affiliations. This shift could lead to changes in government policies that affect Tesla, potentially impacting its market valuation.

In summary, the potential fallout between Elon Musk and Donald Trump could lead to increased volatility in Tesla's stock performance and market valuation. The loss of government support and the potential shift in political alignment could impact Tesla's ability to navigate regulatory hurdles and maintain its market position. Investors will be closely watching these developments, and any signs of a breakdown in the relationship could lead to further declines in Tesla's stock price.