Trump vs. Musk: Public Clash Sends Shockwaves Through Financial Markets
On the 5th, a public clash between U.S. President Donald Trump and the world’s richest person, Elon Musk, shook financial markets. It started when Trump criticized Musk during a meeting with German Chancellor Friedrich Merz, expressing disappointment over Musk’s opposition to his tax cuts. Trump’s remarks were followed by a post on Truth Social, criticizing Musk’s government subsidies, particularly for electric vehicle incentives.
Musk swiftly retaliated via X, challenging Trump’s statements and defending his position with pointed remarks, even mocking Trump’s past comments. The tension escalated as Trump countered, suggesting that cutting government subsidies to Musk’s companies could save billions in the budget, leading Musk to threaten pulling SpaceX’s Dragon spacecraft contracts.
As the feud raged on, Tesla’s stock plummeted 14%, and Bitcoin’s price faced downward pressure, dipping below $100k.
