The conflict between Elon Musk and president Donald Trump erupted with fresh force and took unexpectedly individual character.
On platform X, Musk accused Trump of appearing in the alleged "Epstein files" — a collection of papers concerning the contacts of prominent people with the already deceased financier and sex offender Jeffrey Epstein. According to Musk, it was due to Trump's presence in these files that they were never full publicised. In a short but firm entry, Musk wrote:
"Time to drop a truly large bomb: @realDonaldTrump is in Epstein's files. That's the real reason they weren't made public. Have a good day, DJT!”
This caused a storm in the media and an immediate reaction from the erstwhile president.
Trump did not stay indebted and responded to his account on fact Social. In his entry, he threatened to terminate all national contracts and support programs for Musk-related companies, including Tesla, SpaceX and Neuralink. He besides expressed the opinion that Musk owes success mainly to state support alternatively than his own innovation. He claimed that he himself had taken distant “the EV mandate” — that is, political and financial preferences for the electrical vehicle industry, which would force Americans to quit combustion cars for electrical vehicles. He besides added that he had previously suggested that Musk leave the decision-making circles and influence the national policy:
“Elon Musk is ungrateful. Everything he has owes to the national government. By taking his support for EV, I saved his freedom of choice for drivers. If he continues to attack, his companies will lose all contract they have with the U.S. government.”
However, the background of the conflict goes deeper than just individual tours and public accusations. It all started with Musk's comment on the fresh budget bill, which he called "disgusting abolition". The Act assumes, among another things, the withdrawal of taxation credits for persons purchasing electrical vehicles, which has a direct impact on Tesla's business. Musk powerfully criticised the direction of economical policy, which he felt would hit innovative companies and hinder energy transformation:
"What happens to the budget is simply a public surrender against corruption and the lobbying of fossil fuels. If we truly want to fight climate change, we cannot punish those who are working on solutions at the same time."
Trump, on the another hand, found Musk's criticism unfair, reminding him that Elon himself was aware of the provisions of the Act, and his current criticism is simply due to the fact that he did not receive what he expected. The thought was for further billions of dollars of subsidies to support Tesla and another projects.
The clash between Musk and Trump immediately translated into the financial market. Tesla's shares lost over 17% in a fewer days, leading to a drop in marketplace capitalization by tens of billions of dollars. The investors reacted nervously not only to Trump's threats themselves, but besides to the possible political risks associated with Musk's further actions. Uncertainty about the destiny of national contracts and technological support programs has sparked an avalanche of speculation whether Musk decides to limit his presence in the United States or whether he might even be willing to invest in improvement abroad.
But that is not the end. Musk besides suggested the anticipation of creating a fresh political group that would counterbalance both major parties. In his conversations with close colleagues, he would talk about the request for a “new American technological force” in politics. The speculations about his possible political ambitions have gained strength, especially since Musk had previously engaged in public debates on freedom of speech, the limits of technology regulation and the direction of energy transformation:
“If politicians are incapable to act for the sake of the future, it may be time for engineers to take their place.”
All this conflict is not without influence on the American political and economical scene. This is the clash of 2 giants — 1 of the most influential entrepreneurs in the planet and the erstwhile president, who may search office again. Accusations of contacts with Epstein, threats of withdrawal of government contracts, public disputes over budget and subsidies — all this indicates that tension will only grow. To the public, this is simply a fascinating yet disturbing spectacle. For financial markets and investors, the origin of serious uncertainty. For politicians, the signal that the fight for influence in future elections can take a completely fresh form.