Elon Musk has found himself in hot water following his public clash with Donald Trump. Investors hoped Musk would pivot back to business after announcing a step back from politics, but instead, tensions between the tech mogul and the former president have intensified.
Recently, Tesla shares dropped by 14%, reflecting alarm over Musk's fiery social media activity. This was coupled with threats from Trump to boycott Tesla, which could cripple the company’s sales further. Analysts warn that Musk’s foray into political battles, rather than focusing on boosting production and innovation, might impede Tesla's competitiveness, particularly in the autonomous vehicle market where it lags behind rivals like Waymo.
At the same time, Tesla's public image is being hampered by ongoing protests against Musk’s leadership, highlighting growing resentment towards corporate power in politics. Protests have erupted under the campaign titled #TeslaTakedown, denouncing Musk’s societal influence while simultaneously reporting plummeting sales and profits.
While Musk's fallout with Trump has the potential to linger, some experts suggest that the public could forgive Musk if he demonstrates growth and change. Drawing parallels to Bill Gates’ image rehabilitation in the past, they believe this clash may eventually work in Musk's favor. However, given the substantial government contracts tied to SpaceX and its critical role in national security, the future of Musk's ventures is uncertain and highly reliant on the political landscape and Trump's next moves.
Ultimately, as the Musk-Trump exchange unfolds, it serves as a reminder of how intertwined big tech and politics can become, leaving Musk's empire hanging in the balance.
