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The simmering tensions between former "first buddy" Donald Trump and tech mogul Elon Musk have erupted into a full-blown political firestorm, sending shockwaves through the markets and highlighting the unpredictable nature of high-profile alliances. This latest escalation sees President Trump openly suggesting the potential deportation of the South African-born naturalized American citizen, a threat that coincides with a significant dip in Tesla's share price and Musk's public introspection over his recent, controversial appearance.
The renewed animosity stems from Musk's vocal criticism of Trump's signature "One Big, Beautiful Bill," a sprawling tax and spending package currently making its way through the US Senate. Musk, who had previously expressed support for Trump and was a significant donor to his 2024 presidential campaign, has now branded the legislation as an "insane spending bill," threatening to form a new "America Party" to counter what he calls the "Democrat-Republican uniparty." His online tirades, particularly on X (formerly Twitter), have been relentless, accusing lawmakers who supported the bill of hypocrisy and pledging to campaign against them in future primaries.
In response, President Trump has not held back. Beyond the extraordinary hint at deportation, Trump also threatened to turn Musk's own brainchild, the Department of Government Efficiency (DOGE) – an initiative Musk previously spearheaded within the administration – against him, stating, "We might have to put DOGE on Elon... DOGE is the monster that might have to go back and eat Elon." This rhetoric signals a complete breakdown of their prior relationship, which had seen Musk in a seemingly privileged advisory role.
Adding a layer of complexity to the narrative, Musk has expressed a rare moment of regret regarding his flamboyant display at this year's Conservative Political Action Conference (CPAC), where he brandished a giant chainsaw on stage. Responding to a critic who suggested his antics detracted from his credibility, Musk admitted, "Valid point. Milei gave me the chainsaw backstage and I ran with it, but, in retrospect, it lacked empathy." This uncharacteristic admission comes amidst the serious political fallout he is now facing.
The immediate consequence of this public spat has been a noticeable negative impact on Tesla shares. As of Tuesday, July 1, 2025, Tesla's stock (TSLA) has experienced a significant downturn, reflecting investor apprehension regarding the potential for political retaliation against Musk's ventures. Reports indicate Tesla shares have fallen by several percentage points, with concerns mounting over potential scrutiny of government contracts and subsidies for Musk's companies. This political "soap opera," as some analysts describe it, adds to existing pressures on Tesla, which has seen its sales, particularly in Europe and China, facing increased competition and a general backlash.
While Musk navigates this stormy political climate in the United States, his global ventures present a more varied picture. In a contrasting development, Starlink, SpaceX's satellite internet service, has successfully launched operations in Bangladesh. This move, fast-tracked by the Bangladeshi interim government, aims to provide reliable, uninterrupted internet access, particularly in areas susceptible to political disruptions. Starlink's entry into Bangladesh, with various service packages and a one-time equipment cost, highlights its ongoing global expansion, with other Asian nations like India and Kazakhstan also seeing advancements in Starlink's availability. This expansion underscores the dual nature of Musk's influence: a figure embroiled in US political drama, yet simultaneously driving forward technological connectivity on an international scale.
The UK will be observing this escalating feud with interest, particularly given the global reach of both Trump's political influence and Musk's business empire. The implications for international investment and the stability of major tech companies will be closely watched, as the actions of these two powerful figures continue to reverberate across continents and markets.
