Elon Musk Walks Back Criticisms of President Trump in Bid to Defuse Tensions

Strategic Insights -

Elon Musk and President Donald Trump were engaged in a bitter feud, with each blasting the other on social media, until they spoke on the phone Monday night. The call was made after the president and his chief of staff urged Musk to stop the feud, and on Wednesday, Musk issued a rare apology for some of his posts about Trump. The apology comes at a critical time for Tesla, as the company prepares to launch a fully autonomous vehicle, and its stock has taken a hit due to the feud.

Key Takeaways:

  • Musk regretted some of his posts about President Trump, stating they went too far.
  • Musk's apology came after a phone call with Trump and his chief of staff on Monday night.
  • The feud has had a significant impact on Tesla's stock, with a 14% drop on Thursday and a subsequent recovery.
  • Tesla has received at least $38 billion in government funding over the years, and its businesses remain tied to government funding and policy.
  • The company is launching a fully autonomous vehicle in Austin this month and relies on tax credits to bolster consumer demand for its electric vehicles.
  • Trump threatened to retaliate against Musk's companies, suggesting the idea of terminating government subsidies and contracts.
  • Musk's businesses have ties to the federal government, with SpaceX being a key launch provider for NASA and the Defense Department.
  • Trump has said he could reconcile with Musk, but it is not a priority for him.

Statistics:

  • Tesla's stock sank 14% on Thursday due to the feud, before recovering some of its value in the following days.
  • Musk's companies have received at least $38 billion in government funding over the years.
  • The company is launching a fully autonomous vehicle in Austin this month.
  • Tesla relies on tax credits to bolster consumer demand for its expensive electric vehicles.
  • SpaceX, a key launch provider for NASA and the Defense Department, has ties to the federal government.

Sources:

  • The Wall Street Journal
  • The New York Times
  • The Washington Post
  • The Los Angeles Times
  • New York Post columnist Miranda Devine