Background on Key Figures
Elon Musk, the CEO of Tesla and SpaceX, is one of the world’s most influential figures in the technology and automotive industries. He has been a prominent supporter of Donald Trump, contributing to his presidential campaign and advising the administration on various policy matters.
Public Dispute Between Trump and Musk
The recent public disagreement between Elon Musk and President Donald Trump has caused a significant drop in Tesla’s stock price. The conflict began when Musk criticized Trump’s proposed budget bill, labeling it an “abomination.”
Trump’s Response to Musk’s Criticism
Trump expressed his disappointment with Musk’s criticism during a press briefing in the Oval Office. He mentioned that their relationship might change due to Musk’s public remarks.
Musk’s Counter-Allegations on Social Media
In response to Trump’s comments, Musk took to his social media platform X (formerly Twitter) to accuse Trump of ingratitude. Musk claimed that without his support, Trump would have lost the election.
Musk’s Resignation from Government Advisory Roles
Musk announced the previous week that he was stepping down from his advisory roles in the U.S. government, shortly after criticizing Trump’s proposed budget bill. Musk believes that the bill, if passed, would increase the deficit and undermine the work of the Defense Operations Efficiency Commission (DOGE), which he chaired and led to significant layoffs of public servants.
Impact on Tesla’s Stock
By mid-morning in Mexico City, Tesla’s stock had plummeted more than 8.64% to $303.35 per share on the New York Stock Exchange following the public dispute.
Key Questions and Answers
- What caused the drop in Tesla’s stock price? The public disagreement between Elon Musk and President Donald Trump led to a significant decline in Tesla’s stock value.
- What was the nature of the dispute between Musk and Trump? Musk criticized Trump’s proposed budget bill, calling it an “abomination.” Trump expressed disappointment with Musk’s public remarks, suggesting their relationship might change.
- What roles did Elon Musk hold in the U.S. government? Musk served as an advisor to the Trump administration on various policy matters, including public spending cuts.
- Why did Musk step down from his government advisory roles? Musk believed that Trump’s proposed budget bill would increase the deficit and negatively impact the Defense Operations Efficiency Commission (DOGE), which he chaired.
