đ„ Elon Musk and Donald Trump: From Allies to Adversaries the once-strong alliance between Elon Musk and President Donald Trump has deteriorated into a public feud. The conflict escalated when Musk criticized Trump's "Big Beautiful Bill" legislation, labeling it as "outrageous" and "pork-filled." In response, Trump threatened to cancel federal contracts with Musk's companies, including Tesla and SpaceX.
This dispute had immediate financial repercussions. Tesla's stock plummeted by 14%, erasing nearly $200 billion in market capitalization and reducing Musk's net worth by approximately $34 billion.
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đ SpaceX's Dragon Spacecraft: A Point of Contention
Amid the tensions, Musk announced plans to decommission SpaceX's Dragon spacecraft, a critical vehicle for NASA missions to the International Space Station. However, following public backlash and discussions, Musk reversed this decision, confirming that SpaceX would continue operating the Dragon program.
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đ Economic Concerns and Tariff Warnings
Musk has also voiced concerns over Trump's aggressive tariff policies, warning that they could lead to a U.S. economic recession in the latter half of 2025. This statement marks a significant departure from Musk's previous support for Trump and highlights the growing rift between the two figures.
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đ€ Potential Reconciliation Efforts
Despite the public fallout, there are indications of possible reconciliation. Reports suggest that Musk and Trump may engage in discussions to mend their relationship, with a scheduled White House phone call on the horizon. Following these developments, Tesla shares have shown signs of recovery, rebounding by over 6% on Germanyâs TradeGate Exchange.
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đ§ Musk's AI Ventures: xAI and Tesla Investment
In a separate development, Musk is considering a $5 billion investment from Tesla into his artificial intelligence startup, xAI. He conducted a poll on his social media platform X, where a majority of respondents supported the investment. Musk stated that xAI's advancements have been instrumental in progressing Tesla's Full Self-Driving technology.
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These events underscore a significant shift in the dynamics between two of the most influential figures in business and politics, with potential implications for the tech industry and broader economic landscape.