Trump vs. Musk: the dispute that influences the scholarships. Is there any possible collaboration?
Elon Musk is known for the huge risks he has assumed throughout the spectacular entrepreneur career. The biggest “bet” recently assumed was the massive support of the election campaign for Donald Trump, but the exchange of replies between Tesla chief and US president was not without effects on the stock market.
The Musk-Trump dispute has effects on the scholarships. Photo Gettyimages
Given the strong personalities involved, the scenario of a steep distance was taken into account by some commentators, but the time horizon was indefinite. The dispute between the richest man in the world and the strongest president was intense, and the cooling of the US president was understood by investors as major risks to Spacex's government contracts and other companies.
According to some administration voices, Musk's dissatisfaction would have started from the provisions of the tax law that eliminates facilities such as regulatory credit and sales subsidy to value over $ 3 billion for the company.
Tesla shares recorded strong decreases of 14.2%on Thursday after the exchange of sharp replies. The decline of over $ 150 billion on the stock exchange has reminded how quickly the market value of Tesla and Elon Musk's wealth can be adjusted as a response to social media posts. On Friday, the titles recovered over 3%, and in the next 3 sessions they reached almost the level before the decreases. This week, after recovery, the shares were at the closing of 1.7% on Wednesday below the level last Wednesday, before the confrontation, and -13.9% compared to the opening of the year, points out the XTB Romania strategy consultant.
In a communication that does not shine through diplomacy, after criticizing the proposed fiscal law, Musk posted on X that without him, Trump would not have become president. The climbing was very fast.
In an interview about the conflict that Musk would have had with the chief of the treasury, Scott Bessent, the US president replied that “he wants to be good”, which can be translated, in several ways, both literally and as a “goodbye”, even though he added “I had a good relationship and I wish to be good, in fact.”
How realistic can a future collaboration between Trump and Musk be
Changing the tone, Elon Musk acknowledged that he regretted and “went too far” with some of the previous posts. In reply, the president said he finds the gesture as “very beautiful”. Just a few days after the relationship had been declared closed, the decks seem to have been realized, points out Claudiu Cazacu.
Is it possible that the two will work in the future, in a pragmatic way, given the mutual advantages? Donald Trump can understand the benefits of association with an innovative industrialist with extensive financial resources, which develops essential tools in the US in essential fields such as satellite communications, launching space equipment, autonomous vehicles or robots.
In turn, Elon Musk is – especially after “cooling“What took a few days – aware of the importance of the political decision in the major contracts with the state of some of his companies, and the wisdom not to antagonize the president, in a state that has the authority to investigate, tax or regulate. However, the return to the proximity of the previous period will not be simple, indicating a higher volatility than in other scenarios for Tesla actions.
The hope of investors, who contributed to relaunching the value of the shares, is about to fulfill some old promises. The launch of June 12 of Robo-Taxes in Austin would be a start of a promised and long-awaited program, but for the general public, June 22 could be an additional offset, according to Elon Musk, shows the XTB Romania strategy consultant.
With huge pressure and competition sales from Chinese producers, currently in a prices war, Tesla needs great peace in relation to the American administration, and stage victories in the project of autonomous cars to support investor enthusiasm, stresses Claudiu Cazacu.
