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Javier Lacort
Senior WriterI write long-form content at Xataka about the intersection between technology, business and society. I also host the daily Spanish podcast Loop infinito (Infinite Loop), where we analyze Apple news and put it into perspective.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Open warfare between U.S. President Donald Trump and Elon Musk, the world’s richest person, caused Tesla to plummet 14%. The electric car manufacturer’s shares lost $34 billion in value in a single day, marking the second-biggest daily drop in Musk’s fortune.
Why it matters. Investors immediately translated the presidential threats into real risk for Musk’s empire. Trump promised to cancel “billions” in government contracts with SpaceX, which depends on NASA. Tesla also needs federal regulators for its self-driving cars.
In numbers. The $34 billion loss marks the second-largest single-day drop in Musk’s fortune, surpassed only by the November 2021 crash. His net worth has fallen to $335 billion, far from the nearly $500 billion peak he reached after Trump’s election victory.
Background. The feud began when Musk called Trump’s tax plan a “disgusting abomination.” The president, visibly irritated in the Oval Office, responded: “Elon and I had a great relationship. I don’t know if we will anymore.”
Social media platforms became the battlefield. Musk said, “Without me, Trump would have lost the election.” Trump responded by threatening to eliminate subsidies: “The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts.” Musk ended by accusing the president of being in the files of financial magnate Jeffrey Epstein.
At stake. According to The New York Times, SpaceX has contracts worth $3 billion. Tesla benefits from tax credits that Trump plans to eliminate, which, according to JPMorgan, cost the company an estimated $1.2 billion annually. Both companies depend on federal regulatory decisions.
Just hours after the confrontation, the White House scheduled a call for Friday. Trump tried to calm things down: “It’s all good. It’s going very well.” Musk backed down on his threat to dismantle the Dragon spacecraft.
The reconciliation seems more tactical than definitive. As Musk said: “Trump has 3.5 years left as President, but I will be around for 40+ years.”
Image | The White House
Related | The Musk-Trump Breakup Has an Unexpected Victim: The International Space Station
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