#TrumpVsMusk
Trump threatened to revoke federal contracts with Musk's companies, including Tesla and SpaceX. Musk responded by suggesting the decommissioning of SpaceX's Dragon spacecraft, though he later appeared to reconsider.
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š Market Impact
The conflict has had immediate financial repercussions:
Tesla Stock: Shares fell over 14%, erasing approximately $150 billion in market value.
SpaceX Contracts: Around $22 billion in government contracts are now at risk, potentially disrupting U.S. space programs.
Broader Markets: Indices like the S&P 500 and Nasdaq experienced declines amid investor concerns over the dispute's implications.
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š Trade and Economic Implications
Musk's criticism of Trump's tariffs highlights potential global economic consequences:
Recession Risks: Musk warned that the tariffs could trigger a U.S. recession by late 2025.
International Trade: Countries like Australia may face indirect effects, such as increased tariffs and shifts in trade dynamics, due to the U.S.-China trade tensions exacerbated by the feud.