President Donald Trump voiced concerns over subsidies directed towards Elon Musk’s companies, causing significant shifts in financial markets.
Trump's Accusations
Trump accused Musk of heavily relying on subsidies, asserting that Tesla and SpaceX could face closure if government funding is withdrawn. According to him, Musk's firms gain billions annually from federal contracts.
> **Donald Trump, President of the United States:** "Elon may get more subsidies than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa."
Elon Musk's Response
In response to Trump's threats, Elon Musk actively criticized the situation, labeling the Republican Party as the **"PORKY PIG PARTY"** and advocating for forming a [new political party](https://twitter.com/elonmusk/status/1940029010693472616). This situation poses significant risks, impacting Tesla’s stock and investor sentiment. As a result, Tesla’s shares declined by **14%**, affecting shareholder confidence and prompting broader market considerations.
Impact on SpaceX's NASA Partnerships
A potential loss of government contracts poses risks to SpaceX's partnerships with NASA. Historically, threats to cut subsidies have led to increased market volatility and regulatory scrutiny in key sectors. These dynamics are currently unfolding significantly, influenced by Trump's statements.
Thus, the threat of subsidy cuts creates uncertainty for Tesla and SpaceX, which could have a significant impact on their future.
