The Trump-Musk feud has quickly evolved from a media spat into a significant event for Tesla’s future. Once seen as aligned in their views on innovation and deregulation, the rift between Elon Musk and Donald Trump now raises serious questions for investors, customers, and policymakers alike.
The impact on Tesla was almost immediate. After Musk criticized Trump’s proposed economic policies and withdrew his informal support, Trump retaliated with public threats and personal jabs. Tesla’s stock lost over 14% in a matter of days, wiping billions off its market cap. Analysts have pointed directly to the Trump-Musk feud as a contributing factor behind the sudden decline in investor confidence.
There are also reputational challenges. Tesla’s customer base includes many environmentally conscious buyers who are growing uncomfortable with Musk’s political commentary. In Europe, some major retailers have distanced themselves from Tesla due to brand alignment concerns. While Tesla remains a leader in EV innovation, its image has taken a hit, especially in key international markets.
The feud introduces political risk into Tesla’s operational outlook. If Trump regains political influence or power, his proposed policy changes could affect federal incentives for EVs, import tariffs, and space-related contracts. Given Tesla’s reliance on a global supply chain and its links to government partnerships through SpaceX, such risks are far from abstract.
Musk has hinted that he’s open to reconciliation, suggesting the country benefits when top entrepreneurs and politicians cooperate. But whether that olive branch will be accepted remains unclear. In the meantime, the Trump-Musk feud adds another layer of volatility to Tesla’s already complex operating environment.
As the situation develops, Tesla will need to navigate the fallout carefully. Rebuilding trust among consumers, appeasing anxious investors, and staying focused on innovation may prove more difficult in the shadow of an increasingly public and political feud.