- Elon Musk’s Fehde with President Donald Trump If Musk’s companies could weigh up in particular because of its dependence on the government, said investor and ARK Invest CEO Cathie Wood. Musk company like Spaceexare particularly at risk, as the COO indicates last year that it had federal contracts worth 22 billion US dollars.
Elon Musks feud President Donald Trump is not just a little drama, it could have real consequences for Musk’s companies because they rely on the government so much, said Ark Invest CEO and investor Cathie Wood.
Among the company companies both SpaceX and Tesla have benefited From billions of dollars of subsidies and grants – and SpaceX -CEO COO GWYNE Shotwell said last year that the company had 22 billion US dollars of federal contractsthe majority of NASA came.
This dependence on the government could not only become a problem for Musk, but also for investors in relation to his spit with Trump, said Wood in one video Uploaded uploaded to ARK invests uploaded YouTube Channel Friday.
“I think the way this develops is Elon, Tesla, and investors begin to understand more and more how much the government has control here,” said Wood in the video. “Elon is involved in companies that are dependent on the government.”
A more enemy regulatory environment could also be a problem for Neuralink. While Musk’s brain implant company has already received FDA approval for human examsAny future commercialization would also require the approval of the federal government. In the meantime, Tesla was later able to deal with the federal regulations for his autonomous taxi plan, added wood. Any regulation imposed by the executive in the AI could also influence Xai, Musks Ki company, which also has X, its social network.
Last week Teslas stocks fell To criticize up to 14% before the back rash, when Musk Trump’s “Big Beautiful Bill” criticized and shot Trump back, Musk threatened to terminate government contracts. Finally Musk came back and said Unexpected 9-month stay on the international space station.
Later Musk took back his statement about the dragon room and has since seemed to have deleted At least one of his most inflammatory items on X that attacks Trump.
Wood said Musk said the feud with Trump and adds that he “certainly does not want to be affected”, while the USA is negotiating with China, on which Tesla depends on both the production and for the sale of its products. China recently granted Licenses for rare earth minerals to suppliers of the Big Three US car manufacturer, Reuters reported. Tesla was not included, said Wood.
“It clearly damaged some brand damage to Tesla, which he willingly admits, and I think he is trying to solve himself from the government and be connected to one or the other party,” she said.
Nevertheless, Wood said, she believes that the couple will ultimately work out their problems.
“One of the things I have observed over the years since we held Tesla is that Elon Musk works really well under pressure and that he creates a lot of this chaos and pressure himself.”
This story was originally on Fortune.com
