Former U.S. President and Republican candidate Donald Trump applauds as Elon Musk, the head of Tesla and SpaceX, gets ready to leave a campaign rally held at the Butler Farm Show in Butler, Pennsylvania, on October 5, 2024. (Photo: Alex Brandon, AP, File)
Elon Musk, the world’s richest man, might soon face a painful financial setback—and it’s not due to technology, but politics. His very public feud with former U.S. President Donald Trump could shake the foundations of his major businesses like Tesla, SpaceX, Starlink, and X (formerly Twitter).
This political clash could slow Tesla’s dreams of self-driving cars, affect Starlink’s global reach, and make advertisers wary of returning to X. The big question is how far Trump will go in retaliating—and whether Musk will push back harder or cool things off.
Sam Abuelsamid, an auto industry expert, pointed out the irony: “Elon often complains about government spending, but his companies survive on it.” If Trump turns hostile, Musk’s empire could take a hit.
Tesla’s Robotaxi Test at Risk
The timing couldn’t be worse for Tesla. Next week, Musk plans to test Tesla’s first fully self-driving taxis in Austin, Texas. But already, the U.S. highway safety agency (NHTSA) is asking questions—especially about how the cars will perform in fog or rain. This comes after investigations into crashes, including one fatal pedestrian accident.
Meanwhile, Tesla’s robotaxi announcement recently boosted its stock by 50%. But as soon as news of the Trump feud hit, shares plummeted 14%. Investors got nervous, even though shares regained some ground the next day.
Carbon Credits and EV Sales in Trouble
Tesla makes money not just from cars but from selling carbon credits to other automakers. These credits help companies that don’t meet fuel economy rules. But during the feud, Trump-supporting senators added a clause in his budget plan to cancel penalties for fuel-guzzling cars.
If this goes through, Tesla’s credit sales—worth $595 million in just three months—might shrink. This would add to Tesla’s struggles, as many climate-conscious consumers have started avoiding the brand due to Musk’s political stances.
SpaceX Contracts Under Threat
SpaceX, Musk’s space venture, is another potential casualty. It holds billion-dollar government contracts for NASA missions, including a trip to the moon. Trump said he may cut funding for SpaceX, even though it's the only U.S. company that can currently carry astronauts to the space station.
In response, Musk threatened to scrap the Dragon capsules used for these missions. But later walked it back online, suggesting he may not follow through.
Starlink’s Future Uncertain
Starlink, SpaceX’s satellite internet business, has grown rapidly—thanks, in part, to Musk’s past ties with Trump. During a Middle East trip with Trump, Saudi Arabia approved Starlink services. It’s also struck deals in India, Pakistan, and Bangladesh.
India just approved a major Starlink license. But with Musk and Trump at odds, such smooth deals might become tougher to land.
Advertisers Eyeing the Exit (Again)
Musk’s social platform X has already lost major advertisers due to controversial content. While some had started to return, fearing conservative backlash, that return may now stall. If Trump turns against X, companies may once again distance themselves.
Sarah Kreps, a political expert, warns that advertisers could flee if the platform becomes “politically toxic” again. However, that depends on how the situation unfolds in the coming weeks.
