Elon Musk and Donald Trump—two of the most powerful and outspoken figures in the U.S.—have recently been at odds. But after Tesla’s value dropped by $34 billion, Musk has quietly backed away from the feud. Here’s what happened, why it matters, and what it could mean going forward.
What Sparked the Feud?
The conflict reportedly began over political differences and control over conservative influence in media and tech. Trump, preparing for the 2024 election, was said to be unhappy with Musk’s increasing presence in the right-wing space — especially after Musk’s acquisition of X (formerly Twitter) and his growing voice on free speech and political issues.
Insiders say Trump expected Musk to support him more publicly. But Musk’s tone remained neutral, and he even criticized some of Trump’s recent statements, calling them “divisive.” This triggered a series of sharp exchanges, both online and through indirect public comments.
Tesla Share Price Takes a Hit
As the feud escalated, investors started worrying. Tesla has always been closely tied to Musk’s public image, and any controversy involving him tends to affect the company’s market value.
- In just a few trading sessions, Tesla’s stock price dropped significantly.
- This led to a market cap loss of over $34 billion.
- Financial analysts pointed out that investor confidence was shaken, especially with elections coming up and Musk involved in political drama.
Musk Softens His Tone
After seeing the financial impact and the growing concern among Tesla shareholders, Musk appeared to take a step back. His public statements shifted to a more neutral tone. In one recent post, he referred to Trump as “a former president with influence,” without further criticism.
He also redirected public focus back to Tesla’s products, new innovations, and upcoming EV models — a move many believe was aimed at calming investors and staying out of political crossfire.
Final Thoughts
Elon Musk’s feud with Donald Trump may not be over forever, but for now, Musk has chosen to retreat quietly, likely for the sake of Tesla’s future and his own net worth.
This episode reminds business leaders that in today’s connected world, political drama is not just bad press, it’s bad for business.
Musk’s pivot back to innovation, EV leadership, and calmer messaging shows he knows how to play the long game, even if it means taking a step back.