Psychologically, I think this is reflective of cognitive dissonance. The two conflicting ideas are that two people with much to lose would get in the dumbest fight imaginable and the myth of meritocracy [1]. You see, people want or need to believe that people get into these positions through merit: skill, intelligence and hard work.
That's simply not true. We are talking about two of the egotistical, thin-skinned, genuinely stupid narcissists on the planet. Drugs may even be a factor. There is no planet where a charade like this involves calling the president of the United States a pedophile [2].
Media reports seem to universally agree that everybody in the administration absolutely hates Elon. Additionally, IMHO Elon is absolutely on the spectrum. As such, he is a terrible room reader and I believe is deluded into thinking he has a loyal following. He does not. Any clout he has is solely because of being a Trump acolyte.
The myth of meritocracy is perpetuated to keep you working hard to make somebody else rich. It is to reinforce the existing social and economic order. It is to assign blame to those who are poor because poverty is treated as a personal moral failure.
If Trump chooses to, he can effectively bankrupt Elon. That's how insane all of this is.
For starters, Trump can simply revoke Elon's security clearance. There's no recourse for this. And that makes SpaceX's military contracts real awkward.
There are negotiations over a trade deal with China because of the tariffs and what is quite likely the dumbest trade war in history. The terms of that deal could be fatal to Tesla's future.
Trump could even get Elon denaturalized and deported. How? Immigration fraud. It's fairly clear from the facts (and his brother's statements about 10 years ago) that when Elon dropped out of a Stanford PhD to start a company he was technically undocumented. If you misrepresent to USCIS then it is absolutely grounds for denaturalization should they choose, although such proceedings are incredibly rare.
[1]: https://en.wikipedia.org/wiki/Myth_of_meritocracy
[2]: https://deadline.com/2025/06/trump-musk-epstein-files-claim-...