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Trump-Musk Feud Escalates Over Contracts, Political Rift

The public and increasingly personal feud between former U.S. President Donald Trump and Tesla and SpaceX CEO Elon Musk has sparked concern across political and business circles. The once-mutual admiration has turned into a high-profile standoff, with Trump now openly questioning Musk’s government contracts and Musk lobbing fierce personal and political accusations.

Tesla and SpaceX Contracts Under Scrutiny

Musk’s companies have been some of the largest recipients of federal contracts in recent years, with SpaceX alone landing billions from NASA and the Department of Defense for satellite launches, national security payloads, and commercial missions. But Trump now suggests that these contracts may no longer be immune to political review. “We’ll take a look at everything,” he said, hinting at a possible audit or cancellation of Musk’s lucrative deals.

This comes at a time when SpaceX’s valuation nears $350 billion and Tesla remains a critical player in the U.S. electric vehicle market, with federal subsidies forming a key part of its growth story.

Political Fallout and Economic Implications

The feud escalated dramatically when Musk described a Trump-backed spending bill as a “disgusting abomination,” warning that it could bankrupt the country. Trump responded with personal barbs, dismissing Musk’s complaints as self-serving, especially after tax credits for electric vehicles were slashed. Musk further inflamed the situation by referencing Trump in connection to the Jeffrey Epstein files, a claim Trump angrily denied, calling Musk “crazy” and retaliating with threats of contract reviews.

Tesla’s stock took a nosedive as the spat spilled into public markets, with Musk reportedly losing $34 billion in personal wealth. Investors, already wary of market volatility, are beginning to question the long-term stability of Musk’s federal support pipeline.

Musk’s Political Gambit: ‘The America Party’

In response to mounting political alienation, Musk proposed forming a new political outfit named “The America Party” aimed at catering to centrist voters. The move is being interpreted by some as a direct challenge to both major political parties, and a statement of independence following the rift with Trump. Online reactions have ranged from curious to mocking, with memes and social media commentary highlighting both the ambition and absurdity of such a venture.

While some allies have pushed for peace between the two powerhouses, Musk recently replied affirmatively to a call for reconciliation. However, with no meeting planned and both sides seemingly dug in, the feud may continue to destabilize markets and redefine political alliances in the lead-up to the 2024 election.

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