As his feud with Trump reignites, Musk’s business with the government is back in the crosshairs

Elon Musk and President Donald Trump are fighting again. From now on, Musk’s commercial interests – and billions of government contracts they enjoy – are again in the reticle.

Investors already punished Tesla on Tuesday, sending shares from the electric car manufacturer more than 4% less in the afternoon trade. The stock has experienced a rally at the end of the spring alongside the larger market, but remains down 20% so far this year. The actions were struck by a global reaction of the Musk Alliance with Trump on the campaign track and in the White House, where the multi -loving has led a program of government reductions

Musk admitted that there had been a “flame” to the actions taken by his efficiency project of the Ministry of Efficiency which could have affected Tesla sales. However, investors remain largely optimistic about the company and its efforts to detach themselves from electric vehicles on the mass market and to autonomous taxis and robotics, pushing its market assessment to $ 1 Billion of dollars.

Tesla remains Musk’s best known affairs, but her fortune is less directly linked to the government than SpaceX, her rocket creation company. The evaluation of 350 billion dollars in SpaceX is largely based on the many government contracts which feed it. SpaceX’s work for NASA has increased in recent years in support of Artemis’ mission to return to the moon.

Meanwhile, the SpaceX dragon spacecraft is currently the only active ship capable of transporting astronauts to and from the international space station. SpaceX has also become essential to the missions of the Ministry of Defense which are taking in orbit and are today responsible for the majority of these missions, according to Ars Technica.

SpaceX is in private, which means that its actions are not negotiated on the free market. It is therefore difficult to obtain a real -time gauge on how the worsening of relationships could affect the fortune of the company. But the impact could be substantial. Since fiscal 2000, total revenues from SpaceX and Tesla non -classified federal contracts are $ 22.5 billion, according to Bloomberg government data – most of those who go to the former. The Washington Post has put the figure for SpaceX alone at almost $ 38 billion, with $ 6.3 billion alone in 2024 – the highest annual total to date.

The dispute with Trump also withdrew part of the personal net value of Musk. After reaching a summit of almost half a bill of dollars after the victory in the elections of Trump, the count of wealth accessible to the Musk public is now at $ 400 billion, although it always makes him the richest individual in the world by almost $ 150 billion in front of the founder of Oracle Larry Ellison, another Trump ally.

The TIFF Musk-Trump first exploded last month, shortly after Musk officially resigned from its special role for government employees and criticized the massive expenditure and tax reduction bill that Republican senators adopted on Tuesday. Trump responded at the time by threatening to “terminate the subsidies and government contracts of Elon”.

Musk, in turn, said that he would start to “downgrade” the dragon, only to reverse the hours later after an X user advised him and Trump to “cool and take a step back for a few days”.

Before their initial escape hides, Musk announced that he would be in the process of reinstating his political expenses after a candidate that he had supported a key race of the Supreme Wisconsin Court. Some analysts believe that the current relapse in tensions between the two men will be short-lived given Musk’s dependence on government and vice versa.

However, Musk now discusses the launch of his own political party to approach the budgetary imbalances of the United States, which, according to him, Trump’s bill will exacerbate – an assertion supported by the Budget Office of the non -partisan congress. While the executive born in South Africa is not eligible to appear in the elections, any candidate he supported for the National Bureau would probably be confronted with immediate questions about conflicts of interest.