NEW YORK. Elon Musk, the world’s richest man, could lose billions of dollars depending on how his ongoing feud with former President Donald Trump unfolds. The dispute threatens to impact several of Musk’s key businesses, including Tesla, SpaceX, Starlink, and the social media platform X.
Tesla’s plans for self-driving robotaxis, scheduled for testing in Austin, Texas, could face regulatory hurdles if Trump pressures federal agencies like the National Highway Traffic Safety Administration. The agency is already investigating Tesla’s self-driving software following accidents, including a fatal pedestrian crash. The Department of Justice is also reportedly probing Tesla’s vehicle safety.
Tesla’s stock price plunged over 14% amid the public spat, although it partially recovered afterward. Analysts warn that the feud could dampen investor enthusiasm, as much of Tesla’s recent value increase hinged on optimism about its robotaxi service.
Another potential blow to Tesla is linked to carbon credit sales. Republican lawmakers have proposed budget changes that could eliminate penalties on gas-powered car makers for failing fuel economy standards. Tesla, which sells carbon credits to automakers needing to offset emissions, could see this revenue stream shrink.
The feud also risks Tesla’s reputation among environmentally conscious consumers, many of whom have boycotted the brand due to Musk’s political associations. Whether Tesla can regain these customers remains uncertain.
SpaceX, Musk’s private rocket company, could lose crucial government contracts amid the conflict. The company provides NASA launches, astronauts’ transport to the International Space Station, and is contracted for a planned lunar mission. Trump has threatened to cut these contracts, which would be a major setback given SpaceX’s reliance on federal funding.
Starlink, SpaceX’s satellite internet arm, could also be affected. The company recently secured deals in countries like Saudi Arabia, India, and Bangladesh, some possibly influenced by Musk’s prior relationship with Trump. India recently approved a key license for Starlink, expanding internet access for millions.
Meanwhile, the social media platform X faces uncertainty with advertisers. Many left following Musk’s controversial management but have started returning. However, if Trump turns against the platform, it could again become a politically risky space for major brands.
Analysts say the ultimate impact depends heavily on Trump’s next moves and the duration of the conflict, with both sides potentially losing significant ground.
Tesla and SpaceX did not respond to requests for comment.
Paraluman P. Funtanilla
Paraluman P. Funtanilla is Tutubi News Magazine's Marketing Specialist and is a Contributing Editor. She finished her degree in Communication Arts in De La Salle Lipa. She has worked as a Digital Marketer for start-up businesses and small business spaces for the past two years. She has earned certificates from Coursera on Brand Management: Aligning Business Brand and Behavior and Viral Marketing and How to Craft Contagious Content. She also worked with Asia Express Romania TV Show.
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
