The good relationship that Donald Trump and Elon Musk exhibited for months has deteriorated significantly in recent days. Although the businessman seemed to leave his position in the Doge (Department of Government Efficient) in good terms, With a farewell from the Oval Officetensions have not stopped increasing.
So much so that on Thursday the president of the United States was “very disappointed” by the criticisms of the CEO of Tesla to the fiscal bill that promotes its administration. The owner of X (formerly Twitter) responded in several publications that, without his support, Trump “would have lost the elections.”
The dispute rose when Trump said that “the easiest way to save billions of dollars” of the federal budget is canceling the subsidies and government contracts that benefit Musk companies. According to The New York Timesonly in 2024 the companies linked to the tycoon accumulated about 100 contracts with about 17 federal agencies. Most were for Spacex, but Tesla also is among the beneficiaries. In total, there were about 3,000 million dollars.
Trump even affirmed that he had asked Musk to leave his post in the government, an affirmation that the businessman strongly denied in X: “What a lie so obvious. How sad.”
The climb coincides with a delicate front for Tesla. The fiscal policies promoted by the Trump administration could be a coup of 1.2 billion dollars to the annual benefit of Tesla, according to JPMorgan (Via Bloomberg), by largely eliminating the fiscal credit of 7,500 dollars for electric vehicles.
On Thursday, the stock market effects were demolving. Tesla fell up to 18 % in its worst day since September 2020. At the close, the collapse was 14.26 %. Only on that day, he lost more than 100,000 million dollars of stock market capitalization, erasing a good part of the rebound he had achieved in recent weeks.
Images | The White House
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