The recent proposal by Donald Trump to end federal subsidies for Elon Musk's companies has led to significant market volatility.
Trump's Frustration
Trump's assertion was made following his frustration over continued federal support for Musk, despite previous suggestions for such measures. On social media, Musk challenged Trump’s criticism, hinting that potential changes might affect his companies' operations.
Market Reaction to Statements
Following Trump's announcement, Tesla shares experienced a sharp decline, reflecting investor concerns. While the potential impact on SpaceX contracts, estimated at $20 billion, remains uncertain, the threat itself shows polarized market reactions.
Future of Musk's Companies
Despite Trump's threats, there are currently no official actions from the government. Investors noted that there have been no immediate repercussions on the cryptocurrency market. Tesla has had past involvement with Bitcoin, but no significant changes have been observed so far.
Trump's proposal to end subsidies could lead to significant changes in the financing of Musk's companies, yet the market reaction remains controlled.
