Trump and Musk’s Escalating Feud
In a surprising turn, President Trump intensified his feud with former advisor Elon Musk on Thursday, criticizing the substantial federal funding supporting Musk’s enterprises. He claimed that cutting these subsidies could save “billions and billions” from the budget. It’s curious, he noted, that former President Biden didn’t take action on this sooner.
Following Musk’s criticisms of certain proposed legislation, which included key Republican campaign promises, Trump hinted at possible repercussions. Musk has been a significant financial supporter for Trump in the upcoming 2024 elections, but now it seems their relationship is fraying.
The fallout from this conflict impacted Musk dramatically, as Tesla’s shares plummeted by 13.8%, erasing a considerable portion of his wealth. His stake in Tesla alone is valued at approximately $92.6 billion, making up a large chunk of his total net worth of $37.27 billion, based on analysis from Yahoo Finance.
Musk’s business interests are vast, including ownership of SpaceX and the social media platform X, formerly known as Twitter. He also leads Neuralink, focused on brain-computer interfaces, and Boring Company, which specializes in tunneling technology.
Both Tesla and SpaceX benefit from extensive contracts with federal agencies. They provide services such as Starlink Internet and participate in significant space missions, as well as receiving electric vehicle subsidies from the Biden administration.
For instance, SpaceX secured $3.8 billion in federal grants in 2024. This was confirmed by an analysis from the New York Times. Additionally, Musk’s Starlink began supplying internet services to the White House, enhancing its influence, especially after a successful rescue mission involving an astronaut from the International Space Station last year.
The federal expenditure on electric vehicle tax credits in 2024 totaled $2 billion. Interestingly, Tesla’s market share in the EV sector has dipped below 50%.
In a notable event earlier this year, Trump publicly purchased a red Tesla at the White House, an action that came after he bought a cyber truck for his granddaughter.
Musk’s relationship with Trump has evolved. Just a few months back, Musk expressed his affection for Trump, stating, “I love you as much as a straight man can love another man,” signaling a close rapport that appears to have soured recently.
Republican legislation aims to phase out the electric vehicle subsidies, hoping to cut overtime, tips, and Social Security benefit taxes. Musk, however, argued against this bill, suggesting it could lead to increased national debt while urging Trump not to overlook the real issues at stake.
As tensions mounted, Trump remarked that Musk was becoming a burden and decided to dismantle his electric vehicle support group. He opined that Musk’s push for electric cars wasn’t well received and felt that Musk had known of his reservations for some time.
In response, Musk dropped a bombshell of his own, suggesting that Trump’s name was linked to the Epstein Files—a claim that adds an unusual twist to their fraught relationship.
