Unraveling the Rift: Trump vs. Musk Showdown Heats Up
Trump-Musk Alliance Deterioration: An Examination of Their Previous Friendship
It seems like the friendly banter between President Donald Trump and Tesla (TSLA) CEO Elon Musk is a thing of the past. A public feud is escalating between the two heavyweights, with both leaders taking jabs at each other in the media.
Musk, known for his rebellious streak, has been vehemently opposing Trump's latest taxation-and-spending bill, which he believes fails to control government spending. On X, the social network he owns, Musk urged Congress to "kill" the bill, terming it a "mountain of disgusting pork."
Trump, not one to back down, hit back suggesting that Musk's opposition was driven by self-interest and reminding everyone of a politician's power to influence companies' fortunes. He wrote on Truth Social that "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts."
The friction has sent Tesla's shares tumbling this week. Wedbush analyst Dan Ives on CNBC wonders if the rift might create a regulatory overhang for Musk, given Tesla's plans to expand its autonomous vehicle businesses.
It's not just Musk's businesses that are under the microscope. Trump later wrote on Truth Social that "All this can’t be good for shareholders." Gerber Kawasaki CEO Ross Gerber echoed similar sentiments on X, questioning if Trump will "play nice" with Musk moving forward.
Musk's growing political activism, particularly his criticism of the subsidy rollback for electric vehicles, has not been universally appreciated. Some traditional Tesla supporters find his stance off-putting, while MAGA conservatives may see it as a betrayal. This brand challenge, coupled with the uncertainty surrounding government contracts, has led to declining sales in key markets like North America and Europe.
This public spat has broader implications as well. The threat of canceled government contracts and subsidies has created uncertainty in the tech and automotive sectors, with some fearing that political disputes could lead to disruptive policy shifts. The ongoing feud could also have repercussions for future U.S. policy on electric vehicles and clean energy.
In a nutshell, the feud between Trump and Musk has impacted Tesla's market value and brand in a negative way, with concerns about the stability of government contracts and the future direction of U.S. policy on electric vehicles and clean energy remaining a significant worry.
[Update: The article has been updated to reflect Trump’s Truth Social posts and subsequent messages on X by Musk, as well as the movement in shares of Trump Media & Technology Group (DJT).]
- Elon Musk's growing political activism, such as his criticisms of the subsidy rollback for electric vehicles, has not only led to a potential regulatory overhang for Tesla due to its plans in autonomous vehicle businesses, but also raised concerns about the stability of government contracts and the future direction of US policy on electric vehicles and clean energy.
- The ongoing feud between Elon Musk and President Donald Trump has broader implications for not only Musk's businesses but also the tech and automotive sectors, as some fear that political disputes could lead to disruptive policy shifts, potentially affecting the stability of government contracts and subsidies.
- As the public spat between Elon Musk and President Donald Trump continues, it has become a significant issue in the finance and general-news arena, with discussions surrounding the impact on Tesla's market value and brand, as well as the potential repercussions for future US policy on electric vehicles and clean energy. Additionally, this feud has attracted attention from the ico and politics realms, with commentary on the power of a political figure to influence a company's fortunes.
