The once-amicable relationship between Elon Musk and Donald Trump has dramatically soured, leading to significant repercussions for both Tesla and SpaceX. The friction began with Musk's sharp criticism of a budget bill proposed by Trump, which Musk argued would exacerbate federal deficits. The bill's potential elimination of electric vehicle subsidies poses a direct threat to Tesla's financial health, sending its stocks plummeting by over 14% and erasing billions in market value.
Musk, undeterred by financial losses, accused Trump of being mentioned in the controversial Epstein files, further intensifying their public spat. Trump's response included threats to cut government contracts with Musk's companies, jeopardizing crucial NASA collaborations reliant on SpaceX's Dragon spacecraft.
The feud highlights the volatile intersection of politics and business, with Musk's political affiliations now under scrutiny, potentially affecting his companies' government dealings. As the tension escalates, Musk has even floated the idea of launching a new political party, drawing support from figures like Mark Cuban. This saga underscores the broader risks when business leaders engage deeply in political discourse, with real-world implications for their enterprises.
