🔥 What happened?
1. Public dispute over the budget bill.
Elon Musk sharply criticized the adopted spending bill, calling it a "disgusting abomination."
The bill included cuts to electric vehicle subsidies – clearly hitting Tesla's business, which provoked a strong reaction from Musk.
2. Musk warns of recession.
Musk warned on platform X that the protectionist tariffs supported by Trump could lead to a recession in the USA as early as the second half of 2025.
3. Trump's retort.
Trump responded that he is not interested in further conversation with Musk and called him "lost his mind" – which clearly showed the deepening conflict.
4. Escalation to the space sector.
Musk suggested a temporary withdrawal of Dragon capsules from operation, suggesting that Trump threatens SpaceX's government contracts.
Shortly after, he retracted, emphasizing the importance of Dragons for NASA. Trump had previously suggested the possibility of canceling these contracts.
5. Tesla's stock declines.
In response to the spiraling tensions, Tesla's shares fell by about 14%, resulting in a market value loss of approximately $152 billion.
6. Attempt at reconciliation?
Despite the tensions, the Trump administration scheduled a call with them in hopes of de-escalation - among other reasons, due to cuts and Tesla's exclusion from the fiscal shield.
This is no longer just a personal conflict – billions of dollars are at stake, the future of government investment in technology, and potential economic consequences.
🕒 What's next?
