🔍 1. A Feud Resurfaces: Musk vs. Trump
On July 1, 2025, the feud between Elon Musk—CEO of Tesla, SpaceX, and xAI—and former President Donald Trump reignited dramatically. Musk publically denounced Trump’s controversial “$3.3 trillion Big, Beautiful Bill” as “insane and destructive,” lambasting its budget-busting scale and removal of green energy incentives theguardian.com+2apnews.com+2youtube.com+2apnews.com+14washingtonpost.com+14time.com+14.
Trump swiftly retaliated, threatening to revoke federal subsidies and contracts crucial to Tesla and SpaceX. He also suggested reviewing Musk’s naturalization status—even raising the possibility of deporting him back to South Africa thetimes.co.uk.
In further escalation, Trump urged his Department of Government Efficiency (DOGE)—formerly spearheaded by Musk—to audit his businesses, warning “no more rocket launches, satellites, or electric car production” if subsidies are revoked apnews.com+9businessinsider.com+9reuters.com+9. Musk hit back defiantly, declaring on X (formerly Twitter): “I am literally saying CUT IT ALL. Now.” youtube.com+6aljazeera.com+6reuters.com+6.
🗳️ 2. Musk’s Political Power Play: “America Party”
Reacting to what he describes as a “Democrat–Republican uni-party,” Musk has proposed launching a new political force—the America Party—to hold lawmakers accountable for what he terms debt-fueled betrayals. He is already mobilizing millions to help primary Republicans who supported the bill apnews.com+2time.com+2washingtonpost.com+2.
“Musk vowed that any member of Congress who supported the bill ‘should hang their heads in shame!’… ‘They will lose their primary next year if it is the last thing I do on this Earth’” businessinsider.com+2aljazeera.com+2abcnews.go.com+2.
Analysts doubt a third party can succeed in U.S. politics—but Musk insists he’s investing serious resources. America PAC, which backed Trump in 2024 with about $240 million, could be redirected to support centrist campaigns electrek.co+9time.com+9businessinsider.com+9.
📉 3. Market Turbulence: Tesla Stock Drops Amid Tensions
Investors reacted sharply: Tesla stock plunged 4.8%–5.5%—erasing billions in value—amid fears Washington will cut subsidies and federal contracts barrons.com.
Wedbush analyst Dan Ives described the drama as a market “soap opera” impacting Tesla’s valuation. Nonetheless, he maintained a bullish outlook on long-term fundamentals barrons.com+1nypost.com+1.
Notably, Tesla’s European sales and U.S. deliveries for the second quarter are set to be reported soon. Meanwhile, the newly unveiled robotaxi service in Austin comes under scrutiny internationally—affecting investor sentiment .
🛠️ 4. Musk Takes Charge of Tesla Sales
In a bold operational move, Musk has assumed direct management of Tesla’s sales operations in both Europe and the U.S. following the departure of executive Omead Afshar reuters.com+1fortune.com+1.
This leadership shift signals intensified executive oversight and may foretell strategic changes in Tesla’s customer and distribution approach.
🤖 5. Robotaxi Rollout: Bold Promises vs. Technical Reality
Musk reiterated expectations for Tesla’s robotaxi fleet to launch by July. Observers, however, remain skeptical—highlighting Tesla’s current level 2+ autonomous system and legal constraints around full autonomy electrek.co.
A recent Polymarket bet gave a mere 21% probability for a June delivery, while unresolved technological, regulatory, and infrastructure hurdles loom apnews.com+2electrek.co+2washingtonpost.com+2.
🚀 6. xAI Ambitions: The Memphis Supercomputer & AI Wars
Beyond Tesla, Musk’s xAI is pushing ahead. The company operates the supercomputer Colossus in Memphis and acquired rival X platform and video startup Hotshot, merging under X.AI Holdings Corp en.wikipedia.org+1en.wikipedia.org+1.
xAI has raised over $12 billion including stakes from Fidelity and BlackRock, and is pursuing purchase of OpenAI—a move that would reshape leadership in AI en.wikipedia.org.
However, its Memphis facility drew criticism for excessive power use—150 MW turbines running without proper permits after local objections en.wikipedia.org.
🌌 7. SpaceX & Mars Ambition: Starship on Course
In space, Musk reaffirmed SpaceX’s Mars colonization timeline, targeting crewed missions by 2026/27 and building toward 100–500 launches by 2030–31. This optimism follows mixed Starship flight results and focuses on orbital refueling capabilities en.wikipedia.org.
However, broader debates continue—including concern about political interference with SpaceX’s $22 billion in federal contracts reuters.com+1apnews.com+1.
⚠️ 8. Controversies & Backlash
Musk’s polarizing gestures—such as the debated January “Roman salute”—continue to draw criticism. His daughter and human rights groups have condemned the salute; meanwhile, global backlash in Europe persists en.wikipedia.org.
📌 9. What Lies Ahead
| Focus Area | What to Track |
|---|---|
| Subsidy/Contract Risk | Will Trump-era policies strip Musk’s firms of support? |
| Tesla Resilience | Can Musk’s direct sales oversight and robotaxi pivot stabilize the brand? |
| Political Pull | Will America Party take shape and sway congressional primaries? |
| AI and xAI Power Play | Will xAI’s supercomputer and OpenAI bid shift AI global dominance? |
| SpaceX’s Starship Path | Will Mars ambitions persist amid political headwinds? |
📢 10. Final Take
Elon Musk has once again manifested his dual identity: disruptor in technology and disruptor in politics. His showdown with Trump tests the boundaries between corporate innovation, government policy, and personal ambition. With Tesla’s valuation rattled, xAI on the brink of AI supremacy, and political engagements intensifying, Musk stands at a critical inflection point. Whether he can navigate these crosscurrents—and redefine his influence beyond business—will shape not just his empire, but America’s technological and political future.
