Elon Musk Feud with Trump Risks Roiling Business Empire

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Elon Musk Faces Potential Business Losses Amid Public Feud with President Trump

By TRH News Desk

NEW DELHI, June 7, 2025 – A high-profile rift between billionaire entrepreneur Elon Musk and US President Donald Trump sparked concerns about significant financial repercussions for Tesla and SpaceX. The feud, which erupted over disagreements regarding Trump’s tax and spending bill, has escalated into a public war of words, with both parties trading insults on social media.

Industry analysts and media outlets warned that Musk’s companies could face substantial losses due to threatened government contract terminations and reputational damage.

BBC quoted veteran tech journalist Kara Swisher, saying: “Tesla’s finished. “It was a great car company,” the London-based broadcaster quoted her saying almost as if Tesla died.

Tesla stock price marginally rebounded on Nasdaq on Friday. But Trump’s decision to dump the red Tesla that he had bought after becoming President has sent signals to his supporters to boycott Musk and his business products.

Trump is his scathing posts on Truth Social has launched visceral attacks on Musk. “He wants to go to Mars. He can better go back to Africa,” Trump said in one of the posts.

Analysts linked Trump’s post to the future of SpaceX, which over the years has gained financial muscle, as well as technological might. The Los Angeles Times reported that Musk’s companies, including Tesla and SpaceX, have benefited from over $38 billion in government contracts and subsidies over the past two decades.

However, The Independent warned that Trump’s willingness to use state power to punish critics could lead to regulatory crackdowns, noting, “The biggest risk may be regulatory,” with Tesla still under scrutiny by multiple federal agencies.

Analysts also point to reputational damage. NPR reported a 13% drop in Tesla’s first-quarter sales, partly attributed to consumer backlash against Musk’s political activities, including protests and vandalism at Tesla dealerships. The Guardian noted a sharp decline in Tesla’s US and European sales since Musk’s involvement with DOGE, exacerbated by his opposition to Trump’s tariffs.

SpaceX reportedly holds $22 billion in government contracts. The company faces risks of disruption to US space programs if the government-backed agreements are cancelled. Trump in a few of the Truth Social posts aired his anger at Musk’s space business.

Analysts also warned that Trump could unleash a major disruption in Musk’s businesses by using the state power. Besides, Musk made too many enemies within Democrats, as he had been top campaigner for Trump in the November elections.

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