San Francisco and Washington, D.C. – The world’s richest man has picked a fight with a former U.S. president and it’s hitting where it hurts.
Tesla’s stock plummeted 14 percent on Thursday after Elon Musk lashed out at Donald Trump on social media, igniting a fierce public row just weeks after promising to step back from politics. By Friday, markets showed faint signs of recovery. But for investors hoping Musk would return his focus to engineering and innovation, it’s another gut punch.
This is not the silence they ordered.
“It’s the dumbest thing you could possibly do thinking you’ve got more power than the president of the United States,” said Ross Gerber, a longtime Tesla investor, speaking on what he called an “extremely painful” day.
A Fractured Friendship, a Public Feud
What began as a flirtatious alliance during Trump’s presidency has curdled into open hostility. Musk, once seen as a powerful ally in Trump’s business-first approach to innovation, is now facing threats of government boycotts. Trump has even suggested he might sell the Tesla he recently bought.
More worrying still: he’s hinting at pulling federal contracts from Musk’s companies.
That’s no small threat. SpaceX alone holds an estimated $38 billion in U.S. government contracts. The company ferries astronauts and supplies to the International Space Station, playing a key role in both NASA’s operations and national security.
Even so, Musk appeared to entertain walking away. In the heat of their online exchange, he suggested he might decommission SpaceX’s Dragon capsule. Hours later, he backed down. “Good advice,” he replied to a user urging him to cool off. “Ok, we won’t decommission Dragon.”
Markets React—But So Do Protesters
It’s not just Wall Street feeling the tremors. Across the U.S., anti-Tesla demonstrations have grown louder. Known online as the #TeslaTakedown, the grassroots movement has seen weekend protests outside dealerships and offices since early this year.
“It’s not about the cars it’s about Musk,” said Linda Koistinen, a protester outside a Tesla store in Berkeley, California. “He’s using his wealth and platform in ways that threaten our democracy.”
Tesla’s numbers back up the discontent. In April, the company reported a 20 percent fall in car sales. Profits dropped by more than 70 percent. For a firm once hailed as the future of transport, it’s been a sobering stretch.
The Autonomous Gamble
Meanwhile, Musk is betting big on self-driving cars. He recently claimed Tesla had tested its Model Y electric car with no driver on board, and promised a rollout of robo-taxis in Austin, Texas this summer.
“I believe 90% of Tesla’s future value lies in autonomy and robotics,” said Dan Ives, a senior analyst at Wedbush Securities. “The first task is getting this rollout right.”
But many are wondering: can Musk stay focused long enough to deliver?
“Tesla’s finished,” veteran tech journalist Kara Swisher told the BBC this week. “They’re behind in autonomy, and other firms like Waymo are way ahead. Musk’s attention is scattered.”
Can the Brand Bounce Back?
Some think the fallout with Trump could actually soften Musk’s image. He’s been under fire for drifting into right-wing politics and reinstating extremists on X, the platform formerly known as Twitter.
“Maybe this is the pivot,” said Patrick Moorhead, a tech industry analyst. “We’re a very forgiving country. If Musk pulls back, people might give him another shot.”
Even Swisher, a longtime critic, says redemption isn’t impossible. She points to Bill Gates once vilified as a tech tyrant, now widely viewed as a philanthropist. “He learned. He grew up. People can change,” she said. “Musk could too.”
Politics, Power, and a Fragile Future
But Musk’s businesses don’t exist in a vacuum. SpaceX and Starlink are vital to the U.S. government. Even with Trump’s threats, cutting ties would be complex, costly, and some argue impractical.
Still, the feud exposes a bigger truth: Musk and Trump may be enemies now, but they’re also entwined. One wields enormous economic influence. The other, political power.
Musk built his empire on moonshots electric cars, reusable rockets, satellites that beam internet to war zones. But as his personal battles go public, his biggest challenge may be proving he still knows how to lead a company.
And as of this week, that test is playing out in full view on screens, in markets, and on the streets.
