Elon Musk, the wealthiest individual globally, seems to have made an adversary of one of the world’s most influential leaders.
The ongoing tensions between Musk and President Trump are starting to jeopardize Musk’s business interests, particularly his aerospace firm, SpaceX. The company reportedly holds a federal contract worth at least $22 billion, which was at risk during the height of their disagreements.
Peter Loge, a George Washington University professor and former FDA advisor during the Obama era, remarked, “Trump has a history of utilizing every possible resource to retaliate against perceived slights. Unless Musk finds a way to reconcile, he should be prepared for Trump to take actions against him. If Musk shows remorse, however, he could find himself back in Trump’s good graces.”
While reconciliation between the two could be possible in the future, analysts believe that any notable updates in this feud could leave Musk’s vast business interests exposed to Trump’s potential wrath.
Previously, Trump hinted at cutting Musk’s government contracts during his disputes with his ex-advisor, noting that it could save a significant amount of taxpayer dollars. “It’s quite surprising that Biden hasn’t taken action to end Elon’s government subsidies and contracts,” Trump expressed in a post on Truth Social.
Musk indicated that an end to these contracts could jeopardize SpaceX’s Dragon spacecraft, which plays a crucial role in transporting astronauts and cargo to the International Space Station. He later backtracked slightly after receiving pushback from users urging him to calm down.
This development underscores how intertwined Musk’s ventures have become with the political landscape, especially given Trump’s known penchant for retribution.
“If this escalates, Musk’s business dealings with the federal government could be significantly threatened,” stated Brian Seichik, a GOP strategist.
Musk had left the White House last week following four months of government service, where he often appeared alongside Trump in various settings. He had initially supported Trump, despite increasingly opposing the president’s monumental tax and spending policies.
During a farewell ceremony, Trump lauded Musk’s contributions, presenting him with symbolic honors, but Musk later criticized Trump’s proposed legislation as harmful.
Trump responded to Musk’s comments with disappointment, casting doubt on the potential for a future alliance. “Elon and I had a fantastic relationship, but I don’t know if that’s sustainable anymore,” Trump noted in a discussion with German Prime Minister Friedrich Merz.
The exchange soon turned personal, with Musk using his platform to suggest that Trump would struggle in the upcoming election without him, mocking Trump and criticizing others associated with him.
Tesla’s stock took a significant hit, dropping 14% amid the ongoing feud, resulting in a loss exceeding $150 billion in market value. This is particularly troubling for Tesla, which has been trying to rebound from the controversial fallout of Musk’s past administration role.
Market analysts highlighted that the discord between social media and traditional politics isn’t advantageous for anyone, particularly for Tesla’s stock performance, in light of fears that Trump may pivot from ally to adversary, complicating the regulatory landscape for Musk.
“Both Musk and Trump need each other for various reasons, and a renewed friendship could be a significant boon for Tesla’s stock,” one noted.
Ross Gerber, a long-standing Tesla investor, placed responsibility for the stock’s volatility squarely on Musk, suggesting he needs to publicly mend fences with Trump to restore stability.
“Trump holds grudges and won’t easily forgive disrespect. Musk needs to find a way to make amends,” Gerber tweeted.
As the situation developed, the White House press secretary remarked that Musk’s position as a businessman allows him to speak on behalf of his company amid this feud.
While uncertainties loom for Musk’s business prospects due to potential conflicts with Trump, analysts believe that this feud might also hinder Trump’s governance approach.
SpaceX has been a crucial federal contractor long before Trump’s presidency, partnering with entities like NASA and the Pentagon. Experts warn that if Musk decides to terminate the Dragon program, it could profoundly impact the U.S. space program.
Without SpaceX, NASA would have to revert to Russian capabilities for crew transportation to the International Space Station.
Despite the tensions, some seasoned Republican strategists haven’t entirely dismissed the chance for a reconciliation.
“Yes, Trump could be serious about this feud, but as a negotiator, he may be testing the waters,” said GOP strategist Chris Johnson.
Things seemed to settle down slightly as Musk resumed interaction with others in the business community. However, Trump appears disinterested in addressing Musk directly.
“I won’t be speaking with him for a while but hope things improve for him,” Trump commented in an interview.
Tesla shares saw a modest recovery, rising 5% amid hopes for a thaw in relations.
“If Musk can broker peace, it would act as a brief obstacle in their rivalry, leading to a new camaraderie,” one expert commented. “But if the situation doesn’t improve and escalates further, Trump’s leverage could create significant challenges for Musk’s business dealings.”
