Last week, Elon Musk shared a reconsideration of some of his tweets, seemingly trying to distance himself from a controversial fallout that jeopardized his business interests as Tesla’s CEO.
Musk was formerly the largest supporter of President Trump’s election campaign, but tensions sharply escalated last week when the world’s richest man criticized presidential aides and mocked his ties to convicted sex offender Jeffrey Epstein in a series of posts.
On Tuesday, Musk posted on x, the social platform he owns: “I regret some of my posts about President @Realdonaldtrump last week. They went too far.”
Investors appeared to welcome the possibility of a resolution, as indicated by a 2.6% increase in Tesla’s stock price during pre-market trading.
This public dispute marked a significant shift in their previously friendly relationship. During the campaign, they proclaimed themselves allies, with Musk briefly serving in the Trump administration at the head of the “Government Efficiency Department.” However, experts indicate that this department’s cost-cutting measures were deemed unlawful.
The relationship soured when Musk publicly criticized Trump’s “big beautiful bill,” alleging it added 2.4 trillion dollars to national debt, branding it as “nasty hatred.”
In response to Musk’s harsh criticism, Trump remarked that the tech mogul was “mad,” while also highlighting potential financial ramifications for Musk’s ventures.
Trump mentioned Tesla in relation to his social media platform, Truth Social, stating that electric vehicle pioneers are facing declining sales in several markets, particularly in Europe, partly due to Musk’s allegiance to him.
Investors are hopeful that Musk’s alignment with Trump will lead to a boost in Tesla’s market valuation, anticipating that the White House may adopt a more favorable stance towards the company’s autonomous driving technology. Musk’s attempt to reconcile came just a day before Tesla launched its “Robotakshi” service in Austin, Texas, a significant move to reinforce its status as the world’s most valuable automaker, despite facing challenges with an aging product line.
Trump also threatened Musk’s major enterprise, SpaceX, claiming that cutting Elon’s government subsidies and contracts could save billions from the federal budget.
However, the likelihood of the U.S. government rescinding SpaceX contracts seems minimal, given the strategic importance of its satellite launches. Before retracting his threat, Musk had hinted at discontinuing the Dragon Spacecraft, a crucial vehicle for transporting NASA astronauts to the International Space Station.
Source: www.theguardian.com
