Musk vs. Trump: The Fallout and Implications for Business

Mon Jan 12 2026 08:06:08 GMT+0200 (Eastern European Standard Time)

The tense conflict between Elon Musk and Donald Trump raises questions about the future of Musk’s companies, particularly Tesla, as investor confidence wavers.

Elon Musk's recent feud with Trump appears to jeopardize his business interests, especially Tesla, which saw a dramatic drop in share price amid the controversy. As Musk tries to refocus on his ventures, investor concerns grow about the impact of his public persona and the government's potential boycott on his companies.

Elon Musk's ongoing clash with former President Donald Trump has ignited a frenzy of speculation regarding the repercussions for his business empire, notably Tesla. Following Musk’s announcement to shift his focus away from politics, many investors eagerly anticipated a renewed commitment to his technology firms. However, their hopes were dashed when an explosive exchange transpired on social media, drawing unwanted attention and a threat of government boycott from Trump's camp.

Tesla's stock experienced a significant plummet, dropping 14% in just one day as Musk publicly criticized Trump. Despite a slight recovery the following day, the volatility has left investors questioning Musk's priorities. This situation has put both his companies and their market performance at risk, with analysts arguing that the issues at Tesla run deeper than this feud. Veteran tech journalist Kara Swisher highlighted concerns about Tesla's future capabilities, stating it might already be "finished" in the competitive autonomous vehicle sector.

Musk must also contend with increased scrutiny over Tesla's sales, which reported a substantial decline this year amid a grassroots protest campaign dubbed #TeslaTakedown. This movement criticizes Musk’s rising influence and the perceived threats he poses to democracy. The fallout from Trump's recent statements, coupled with declining sales and profits, raises further questions about Musk's direction and commitment.

Some observers suggest that Musk’s fallout with Trump might paradoxically lead to a rehabilitation of his public image, akin to how Bill Gates managed to transform his reputation after years of criticism. However, while some believe Musk’s significant engagement with Trump might have shifted, the reality is that their intertwined interests mean both parties still rely on one another.

Ultimately, the future trajectory of Musk's enterprises hangs in the balance as the ongoing feud continues to unfold. Both industries and investors will be watching closely to see how this drama plays out and what it may mean for Musk's business ambitions moving forward.