Elon Musk’s recent criticism of President Donald Trump’s spending bill has contributed to a notable decline in Tesla’s stock price, which fell approximately 4% on Thursday. Even more so in recent months. Musk has indeed gone on record with his frustration toward the Trump administration—most notably in their rejection of Jared Isaacman’s nomination. Isaacman has been a partner with Musk’s SpaceX in private spaceflights.
Musk’s frustration seems to be inspired by his just-ended service as a special government employee, which expired Friday. Musk has played hardball with the new administration. Biden’s treasury chief is now going all out against Trump’s hallmark tax-cut bill. He has even gone so far as to call on Congress to “KILL” the spending bill, calling it a “disgusting abomination.”
Tesla is now dogfighting its test driverless vehicles in the same markets that Waymo has established such a strong toehold. Waymo has actually been operating a commercial robotaxi service in partnership with Uber. This growing competition heightens the pressure on Musk, as he looks to keep Tesla’s 70% market share for EVs in the fast-changing automotive landscape.
Walter Isaacson, Musk’s biographer, confessed that Musk’s frustration at the Trump administration has been obvious. As noted by Isaacson, once Elon Musk decides to do something, he goes all in. This all-consuming commitment drives his public pronouncements and business plans.
That step put Musk on a direct collision course with the Trump administration, a prospect that has investors biting their nails. The recent plunge in Tesla stock marks the third time this year that the company has seen a fall of more than 20%. As that pressure has increased, Musk similarly raised stakes by threatening to primary any lawmakers who support the bill. He’s clearly willing and able to put his political muscle behind dramatic policy moves to shape the final outcome.
Add to that Musk’s repeated comments opposing the recent spending bill. At the same time, his payment technology company, Shift4, poured $27.5 million into SpaceX through June 30, 2021. This genius investment further proves just how interwoven Musk’s enterprises truly are. It showcases his wider commitment to challenging conventions of an eclectic range of industries, including aerospace.
As these events develop, the public interest stakeholders will be deeply engaged. They’re eager to see how Musk’s political skills and competitive geniuses will shape Tesla and its future leadership in the automotive market. His vigorous public comments indicate that he’s willing, indeed, may be already willing, to keep doing battle with trade rivals and domestic enemies at home.