In a surprising twist, Elon Musk—typically known for his public disputes with former U.S. President Donald Trump—recently took a conciliatory turn. The tech mogul praised Trump for brokering a significant ceasefire in Gaza. This is part of a larger drama that includes political battles, electric vehicle tax credits, and Musk’s potential foray into politics. Let’s unpack the story.

 

1. From Feud to Kudos: What Sparked the Change?

Just a day earlier, Trump had lashed out at Musk over his criticism of what he called the “Big, Beautiful bill”—a sweeping legislative package that included scaling back electric vehicle (EV) tax credits, among other things. Trump accused Musk of being ungrateful, claiming Musk’s companies “received more subsidies than any human being in history,” and told him to “shut shop” and “go back home” to South Africa  .

Instead of responding with more heat, Musk pulled back, posting on X (formerly Twitter), “So tempting to escalate this. So, so tempting. But I will refrain for now.” 

 

2. Ceasefire in Gaza: A Moment for Praise

The turning point came when Trump shared a post on Truth Social announcing a 60‑day ceasefire in Gaza. Musk retweeted it with the caption: “Credit where credit is due,” and added that Trump “has successfully resolved several serious conflicts around the world.” 

By doing so, Musk publicly acknowledged Trump’s role in brokering peace, shifting the tone from confrontation to cooperation—even if only briefly.

 

3. The Bigger Feud: EV Tax Credits and Political Stakes

At the core of their disagreement is the fate of the $7,500 EV consumer tax credit. Introduced under the Biden administration, this credit has been a lifeline for Tesla and the wider EV industry. Trump’s proposed “Big, Beautiful bill” seeks to remove it, a move Musk sees as a direct threat to EV adoption.

Musk has even suggested forming a new political party—tentatively called “American Party”—if Trump’s bill becomes law  . His warning signals how seriously he views the legislation’s impact.

 

4. Subsidies, Political Moves, and Tesla’s Future

Trump’s claim that Musk received excessive subsidies carries political weight. Tesla has indeed benefited from government support, but Musk argues the credit supports sustainable technologies popular among consumers.

If Trump succeeds, Tesla could face higher costs and fewer incentives for buyers—potentially slowing EV growth in the U.S.

 

5. What It Means for Musk, Trump and You

• For Musk: The ceasefire comment was a rare move away from confrontation—showing restraint and an openness to unity over global peace.

• For Trump: Accepting praise from a high-profile tech entrepreneur could bolster his position with business-friendly voters.

• For EV consumers: The future of the $7,500 tax credit hangs in the balance. Losing it might raise prices and slow EV adoption.

 

6. The Takeaway: Strategy Amidst Conflict

This episode highlights Musk’s nuanced strategy: fight hard when it matters—like over EV incentives—but also know when to step back and offer credit, especially on issues like global peace.

It’s a reminder that even in high-profile tech–political spats, a moment of unity can emerge—especially around international diplomacy.

 

Final Thoughts

The Musk–Trump saga is far from over. But for now, amid fire and fury, Musk has chosen peace—at least rhetorically. Whether this marks a lasting thaw or a simple tactical pause, it underscores how deeply intertwined business, politics, and global diplomacy are today.

If you’re tracking the EV market, U.S. politics, or global peacemaking, this story is a telling reflection of the balance between critique and acknowledgement in high-stakes public discourse.