Photo illustration: Aïda Amer/Axios. Photos: Steve Granitz/FilmMagic and Lester Cohen/Breakthrough Prize via Getty Images Elon Musk might have hundreds of billions of dollars and a social media megaphone, but President Trump’s power over the levers of government may put Musk’s business empire at much more immediate risk. The big picture: Virtually everything Musk does has huge regulatory exposure, from cars to spaceflight to neural implants. What they’re saying: “You just have to understand that if you own Tesla, it will be difficult to sleep at night as investors can scrutinize it from a fundamental standpoint, but also a headline standpoint,” said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors, in a commentary Friday. Zoom out: Trump, thus far, has played the whole thing relatively cool, saying he doesn’t really care if Elon turns on him. How it works: There’s a laundry list of ways Trump could squeeze Musk: What to watch: How Musk’s public position evolves in the coming days, given how incendiary his comments were Thursday and how much Trump appreciates deference. The bottom line: The “first buddy” is about to find out how far friendship actually goes. Editor’s note: This story has been updated with comments by President Trump. President Trump and Elon Musk during a news conference in the Oval Office on May 30. Photo: Francis Chung/Politico/Bloomberg via Getty Images President Trump suggested he could cancel billions of dollars of government contracts with Elon Musk’s companies, accusing his former adviser and biggest political donor of going “crazy.” Why it matters: The close relationship between two of the most powerful men in the world is imploding in real time, triggered by Musk’s scathing criticism of Trump’s signature legislation. Tesla, Musk’s only publicly traded face, lost more than $150 billion in value on Thursday. Photo illustration: Sarah Grillo/Axios. Photo: Apu Gomes/Getty Images Just a few months ago, investors were willing to massively increase the valuations of Elon Musk’s companies, in part because of his proximity to Donald Trump and the centers of Washington power. That ended yesterday. Why it matters: Markets and private investors attributed literally hundreds of billions of dollars of value to the idea that Musk’s privileged access would flow to the success of Tesla, SpaceX, xAI and the like. President Trump speaks out against a boycott of Elon Musk’s companies on March 11 and said he would purchase a Tesla. Photo: Andrew Harnik/Getty Images Tesla shares plunged Thursday as the relationship between Elon Musk and President Trump imploded and Trump suggested canceling Musk’s government contracts. Why it matters: The threat escalates their real-time breakup and threatens to deliver a serious blow to the wealth of the world’s richest person. Axios Media Inc., 2025
