Musk vs. Trump: The Billionaire Brawl That’s Rocking Tesla and Threatening Space

The public spat between Elon Musk and Donald Trump has officially gone from political theater to market mayhem, leaving Tesla investors reeling and even putting America’s access to space in question. What started as a budding bromance – with Musk endorsing Trump and even taking on a role in his administration – has spectacularly imploded, triggering a chain reaction that’s sent shockwaves across the financial world and beyond.³

Tesla’s Rollercoaster Ride Just Got Wild:

Remember that mid-2024 surge that saw Tesla shares skyrocket by 169% after Musk threw his weight behind Trump? Well, those glory days feel like a distant memory. A “Tesla Takedown” protest movement already chipped away a significant chunk of that gain, but the real plunge began recently. Since May 27th, coinciding with Musk’s public disengagement from Trump and his fiery criticism of the “Big Beautiful Bill,” Tesla shares have nosedived nearly 12%. Overall, the stock is reportedly down a staggering 22% this year.Why the plummet? It seems Musk’s political pendulum swing has alienated a segment of his customer base. And frankly, a public feud with a former (and potentially future) President, complete with threats of contract cancellations, isn’t exactly a bullish signal for investors.The drama is simply too much noise, and it’s hurting the bottom line.

NASA in the Crosshairs: A Threat to Space Access:

The stakes got infinitely higher when Trump hinted at cutting federal contracts with Musk’s companies.Musk’s response? A truly jaw-dropping threat to “decommission” SpaceX’s Dragon spacecraft “immediately.” Let’s be clear: Dragon isn’t just a way for NASA to get astronauts to the International Space Station; it’s currently the only U.S. means. This isn’t just about money; it’s about national capability and prestige. Suddenly, nearly $22 billion in crucial government contracts, from Pentagon satellite launches to the highly anticipated Artemis III moon mission, were hanging in the balance. It was a stark reminder of how intertwined private enterprise and national interests have become in the modern space race. Thankfully, in a rare display of restraint (or perhaps good advice from his inner circle), Musk walked back the Dragon threat, tweeting, “Good advice. Ok, we won’t decommission Dragon.” Crisis averted, for now.

What Sparked This Billionaire Brawl?

The immediate trigger for this public divorce was Musk’s scathing critique of Trump’s “One Big Beautiful Bill,” which he lambasted as a “disgusting abomination” due to its exorbitant cost and potential impact on national debt. Trump, never one to back down from a fight, swiftly retaliated. He accused Musk of opposing the bill because it reportedly included cuts to electric vehicle subsidies, claiming Musk “went CRAZY” after the “EV Mandate” was taken away. The former President even went so far as to suggest that terminating government subsidies and contracts with Musk’s companies would be the “easiest way to save money in our Budget.”

The Fallout and What’s Next:

This is more than just a clash of titans; it’s a very public unraveling of a strategic alliance that many believed would be mutually beneficial. For Tesla, the instability created by Musk’s political theatrics is a serious concern. For NASA, it’s a stark reminder of the delicate balance in public-private partnerships, especially when the private partner has a penchant for unpredictable pronouncements.The question now is, what’s next? Can the relationship between Musk and Trump be repaired? Will the “Big Beautiful Bill” continue to be a flashpoint? And most importantly, will investors regain confidence in Tesla amidst the ongoing political drama? One thing is for sure: the Musk-Trump saga is far from over, and its ripple effects will likely be felt for some time to come.