Elon v Trump

Elon Musk and Donald Trump have gone from being BFFs to enemies. Musk has been very critical of Trump's pending tax bill, which will add trillions of extra debt to the already large US debt pile. If I were Musk, I would also be bleak. He gave up months of his life to run DOGE, to reduce US spending, and with one bloated budget proposal, all that work gets undone. Over the last few days, Musk's posts have become increasingly vocal, prompting Trump to respond. Things got personal.

When Musk announced a few weeks ago that he would be leaving DOGE, the Tesla share price jumped higher. Yesterday, in response to Trump's attacks on Musk, the Tesla share price dropped 14%. Just ask Harvard what happens when you are in the Trump administration's crosshairs.

These guys are street fighters, who can find creative ways to get what they want. Musk seems to have done the impossible, uniting those on the far left and far right. The left dumped their Tesla cars when Musk became Trump's righthand man, and now the right could do the same.

The Tesla share price rocketed higher when Trump won the election last year on the assumption that there would be beneficial relaxation of certain regulations and many juicy government contracts coming the carmaker's way. Some of those gains are still in the share price. There could be more pain ahead for Tesla but we have owned this one for many years and ridden countless up and downs. There was some sort of truce declared late last night but I doubt the bickering is over.