The dynamic duo of Donald Trump and Elon Musk has captivated the nation since the 2024 election.

Seen as a powerhouse alliance combining political savvy and tech innovation, recent reports suggest this high-profile partnership may be experiencing some growing pains.

• According to journalist Maggie Haberman, Trump has expressed private concerns about Musk’s constant presence at Mar-a-Lago where Musk has participated in meetings with foreign leaders and incoming White House officials.

While Trump values Musk’s support – including over $250 million in campaign contributions – the president-elect arguably values loyalty more.

Plus, not one to be overshadowed, Trump bristled last month when critics called Elon “President Musk.”

While clearly an exaggeration, the nickname underscores Musk’s growing influence.

Meanwhile, both men are accustomed to being the center of attention and calling the shots.

Adding to the potential for conflict? Differing policy priorities… potentially.

Your Rundown for Wednesday, January 8, 2025...

Tough on China… Tough on Tesla

In particular, Trump’s aggressive stance on China, including proposed tariffs, clash with Musk’s business interests in the country.

For example, Tesla’s Shanghai Gigafactory is the company’s largest and most profitable production facility.

Plus, Tesla relies heavily on China as both a market and a lithium-refining source, which could put Musk in a difficult position if Trump pushes forward with his trade policies.

Furthermore, Musk's personal forays into foreign policy, including promoting right-wing parties in Europe, could complicate Team Trump’s diplomatic efforts moving forward.

Here’s one example:

One of Trump’s campaign promises last year was to bring an end to the war in Ukraine. Musk, however, provided support to Ukraine by activating satellite-internet services via his company Starlink.

Although Musk refused to extend Starlink coverage to Crimea for a Ukrainian attack on Russian naval vessels, Trump may find it challenging to navigate the dynamics created by Musk's involvement.

Despite these potential points of friction, it’s important to note that the Trump-Musk alliance remains strong. For now.

Their shared vision for reducing government inefficiency through the newly established Department of Government Efficiency (DOGE) demonstrates their continued collaboration. (More on that Friday.)

And Musk’s business and tech acumen aligns with Trump’s goals for American economic dominance and innovation.

But Musk has already put Trump in a precarious position by advocating for H-1B visas, citing the program as crucial for American innovation (as well as the survival of Musk’s companies).

After backlash from MAGA supporters, Musk shifted his stance, calling the system “broken” and proposing reforms.

The damage done to Trump’s base, however, could be irreparable.

In the coming months, all eyes will be on whether this powerful twosome can govern together.

Will Trump and Musk strike a balance that allows both to shine? Or is a serious rift inevitable?

Market Rundown for Wednesday, Jan. 8, 2025

S&P 500 futures are up about 0.10% at 5,960.

Oil’s up 0.40% to $74.56 for a barrel of West Texas crude.

Gold is up 0.13% to $2,668.70 per ounce.

But Bitcoin is down about 1% to $95,350.