Elon Musk reboots Republican campaign funding! Trump faces impeachment in the 2026 midterm elections

December 16, Elon Musk, with a net worth of $749 billion, announced the resumption of funding for the Republican Party, returning after a six-month break from Trump. The 2026 midterm elections are approaching, with the Republican advantage being marginal and lagging behind the Democrats in funding. Musk gains three major benefits: Tesla’s new energy subsidies, SpaceX government contracts, and the passage of autonomous driving legislation. The two sides broke apart in May over the “Build Back Better Act,” reconciled in September, and then the EU fines facilitated a trench warfare community.

From Public Confrontation to Trench Warfare, Musk and Trump Reconcile

On May 30, 2025, Musk announced his resignation from the Department of Government Efficiency, citing “differences in ideology.” The trigger was Trump’s proposed “Build Back Better Act,” worth over $4 trillion, which directly affected Tesla’s core interests by canceling EV subsidies, and the increased defense spending conflicted with Musk’s debt reduction stance. On July 5, Musk officially “betrayed,” announcing the formation of a new political party, the “American Party,” representing 80% moderates, and explicitly stated he would participate in the 2026 midterm elections.

Musk even revealed that Trump appeared in Epstein case files, posting that “this is the real reason it was not made public.” This move sparked public controversy. Trump’s response was equally fierce, criticizing Musk on social media for “losing patience” and “mental instability,” and directly threatening to cut off billions of dollars in government subsidies and contracts for Musk’s companies. After the news broke, Tesla’s market value evaporated by over $150 billion in a single day, and SpaceX’s rocket cargo project was temporarily halted by the U.S. military. The conflict escalated from policy disagreements to direct interests confrontation.

The turning point came on September 21. At the memorial service for conservative activist Charlie Kirk, Musk and Trump unexpectedly appeared together and sat side by side, marking their first public contact since their split. Musk posted a photo with Trump on social media with the caption “For Charlie,” signaling reconciliation. Kirk had hoped for a reconciliation before his death, and both sides used Kirk’s name to express goodwill. Essentially, this was driven by Trump’s midterm election pressures and Musk’s business pressures. Musk needs government contracts, such as building satellite launch centers requiring land and environmental approvals, autonomous taxi licenses, and subsidies for new energy businesses. Initially, due to lack of political experience, Musk was “played” by Trump and became angry, but received no response and faced increased pressure. Now, with the other side showing a willingness to reconcile, Musk took the opportunity to step down.

On November 18, Musk was invited to attend a White House dinner hosted by Trump for the Saudi Crown Prince. Trump even paused to pat Musk’s belly upon entering. Just one day later, Musk posted on X, “I want to thank President Trump for everything he has done for the United States and the world.” From public insults to sharing a meal together, in half a year, these two of America’s most influential figures completed a 180-degree political turnaround.

Three Core Interests: The True Cost of Musk Betting on Trump

Musk’s financial support for the Republican Party has only one goal: to keep the GOP in control of Congress, to adopt a more relaxed stance on AI and EV regulations, and even to push for federal legislation like the “Autonomous Driving Act.” If the Republicans win the midterm elections smoothly, almost all of Musk’s industries will benefit significantly.

Musk’s Core Demands

Restoration of New Energy Subsidies: Tesla recovers approximately $200-300 million, with individual vehicle subsidies reaching $7,500, offsetting losses from the “Build Back Better Act.”

SpaceX Monopoly: NASA’s crewed Mars program is fully tied to SpaceX, making it a core military supplier within NASA.

Autonomous Driving Green Light: The barriers to commercial full automation are not technical but legal. Under Republican governance, federal legislation will support this.

The valuation ceiling of SpaceX will be thoroughly overturned. If NASA’s crewed Mars plan is fully tied to SpaceX, it means billions of dollars in long-term contracts and exclusive status. When will Tesla’s full autonomous driving be commercially available at scale? The current obstacle is not technology but legal regulation. Musk promises to establish regular contact with the government, with monthly dedicated personnel to coordinate needs. SpaceX may become part of NASA, not only securing “iron rice bowls” but also helping it enter the core U.S. military supply chain—this is the biggest interest in this war empire.

EU Fines Unexpectedly Become a Catalyst for Reconciliation

On December 5, the EU fined Musk’s social platform X €120 million. When Musk angrily denounced EU “overregulation” on his platform and even called for “abolishing the EU,” Trump’s team quickly supported him. Trump himself said the hefty fine was “bad and inappropriate,” and Vice President Vance and Secretary of State Rubio further escalated it as “an attack by foreign entities on American technology,” forming a “trench community” between Silicon Valley and Washington. This timely political support resonated precisely with Musk’s stance, creating mutual reinforcement and paving the way for the fund flow back to the Republican side.

The subtlety of the EU fine lies in providing a common external enemy for both sides. When internal conflicts are hard to reconcile, uniting against external threats is often the most effective way to reconcile. The Trump administration characterized the EU fine as “an attack on American technology,” not only giving Musk political backing but also framing this support as defending American national interests. Musk also quickly understood this, downplaying personal grievances with Trump and emphasizing the alliance to face European regulatory pressure.

On December 19, the Delaware Supreme Court overturned a lower court ruling, restoring Musk’s stock options in Tesla valued at $139 billion. This decision directly boosted Musk’s net worth to $749 billion, making him the world’s first individual to surpass $700 billion. The rapid increase in wealth subtly shifted Musk’s political considerations—compared to forming a high-risk third party, cooperating with existing political forces seems more aligned with protecting his business interests.

No Eternal Enemies, Only Eternal Interests

From publicly confronting and forming a third party in May, to reconciliation and funding restart in December, Musk and Trump’s half-year entanglement is essentially a microcosm of American business capital and political power playing a game of mutual benefit and seeking balance. For Musk, abandoning the radical “American Party” route and choosing to cooperate with the GOP is a rational decision to maximize commercial interests; for Trump and the Republicans, incorporating Musk’s business giant is a key step to easing election crises and consolidating political power.

As president and business magnate, their interests are continuously linked, with a deep foundation of cooperation, always able to find common ground. After years of interaction, there’s no need to tear each other apart. Businesspeople are pragmatic and driven by profit; society has no eternal enemies. Now that Musk and Trump are both smart, they are unlikely to repeat past mistakes. Future cooperation boundaries will be clearer. Musk invests, and Trump uses his power to provide policy advantages for his companies and businesses. Musk also understands that a business genius may not be able to navigate Washington politics effortlessly. Their partnership has experienced ups and downs, with lessons learned. Now, they are clear on the boundaries of cooperation, knowing exactly what each can do and what they should do.