Elon Musk is facing some unfortunate news regarding his business Tesla as his feud with Donald Trump continues.
The former pals have had a very nasty friendship ‘breakup’ in recent weeks. The 53-year-old Tesla CEO is understood to have spent a whopping $300m on support for the 78-year-old Republican president, specifically on his re-election campaign.
Musk, whose Tesla brand was previously heavily endorsed by Trump, was also made the non-Senate-confirmed head of the cost-cutting Department of Government Efficiency (DOGE), and it once seemed like you couldn't go a few days without either of the men praising each other on their respective social media accounts. But this all came to a screeching halt a few weeks ago as the two constantly going at each other.
The latest of these attacks comes from Trump, who shared his thoughts on Musk's recently revealed plans to start a new political party in the US called the America Party, which he says will challenge the Republican and Democratic two-party system. However, it is unclear if the party has been registered with election authorities in the US.
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In a message posted on Sunday (6 July) via his Truth Social platform, Trump wrote: “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.”
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Since the president has posted this, it seems investors are concerned with their Tesla shares, as they dropped more than 7% in pre-market trading on Monday (7 July), putting nearly $70 billion (£51 billion) of the company's market value at risk by the time Wall Street Opens.
If the shares did fall this much, the value of Musk’s Tesla stock could decline more than $9 billion, bringing it down to a figure around $120 billion.
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Earlier this year, investors witnessed the negative impact Musk’s support of Trump had on consumers who turned their backs on the car brand, and in more serious cases, led to arson attacks on dealerships amid DOGE cuts.
The two men have also recently been very outspoken on the fact that they can’t agree on Trump’s ‘One Big Beautiful Bill’, which introduces a mammoth $4.5 trillion extension of Trump’s 2017 tax cuts, meaning there are some very big savings for wealthy Americans and businesses, and some benefits for middle-income earners too.
As the tech boss stepped down from his Department of Government Efficiency (DOGE) co-lead position in May, the two men started berated each other online, and Musk took aim at the ‘disgusting’ Bill and claimed Trump was in the Epstein files.
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Trump has since admitted he is 'very disappointed' by Musk's outburst, claiming that the X owner was 'wearing thin' in his DOGE role and was 'asked' 'to leave', and threatened to deport the South African out of the United States.
However, Trump’s ‘Big Beautiful Bill’ was passed and he signed it into law during a ceremony held on 4 July.
Topics: Donald Trump, Elon Musk, US News
Gregory Robinson