Latest news with #R2.6-trillion
TimesLIVE
01-07-2025
- Automotive
- TimesLIVE
Trump suggests DOGE looks at Musk's companies to save money
After weeks of relative silence after a feud with Trump over the legislation, Musk rejoined the debate on Saturday as the Senate took up the package, calling it "utterly insane and destructive" in a post on X. On Monday he ramped up his criticism, saying lawmakers who had campaigned on cutting spending but backed 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," Musk said. The Tesla and SpaceX CEO called again for a new political party, saying the bill's massive spending indicated "we live in a one-party country, the porky pig party". "Time for a new political party that actually cares about the people," he wrote. Musk's criticism of the bill has caused a rift in his relationship with Trump, marking a dramatic shift after the tech billionaire spent nearly $300m (R5.3bn) on Trump's re-election campaign and led the administration's controversial DOGE, a federal cost-cutting initiative. Musk, the world's richest man, has argued the legislation would greatly increase the national debt and erase the savings he said he achieved through DOGE. It remains unclear how much sway Musk has over Congress or what effect his opinions might have on the bill's passage. Republicans have expressed concern that his on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections. The rift has also led to volatility for Tesla, with shares of the company seeing wild price swings that erased approximately $150bn (R2.6-trillion) of its market value, though it has since recovered.
TimesLIVE
06-06-2025
- Automotive
- TimesLIVE
Trump-Musk row slams Tesla shares, $150bn in market value wiped out
Tesla shares went into free-fall on Thursday as US President Donald Trump publicly feuded with the electric vehicle maker's billionaire CEO Elon Musk, his self-proclaimed 'First Buddy'. Investors watched the unfolding drama with growing worries about what the fracas could mean for Musk's business empire. The carmaker's shares ended the day down 14%, wiping off $150bn (R2.6-trillion) in market value on a day absent of other news about the company. Traders dumped Tesla in heavy trading after Musk quickly responded to Trump's criticism with social media posts that stepped up criticism of the president's tax bill. Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases. Openly feuding with Trump could pose many hurdles for Tesla and the rest of Musk's sprawling business empire. The US transportation department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels. The agency is also investigating Tesla's driver-assistance software, known as 'Full Self-Driving', after a fatal crash. 'Elon's politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,' said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network.
TimesLIVE
06-06-2025
- Business
- TimesLIVE
Trump-Musk bromance descends into brawl over contracts and impeachment
Donald Trump threatened on Thursday to cut off government contracts to Elon Musk's companies and the world's richest man suggested the US president should be impeached, marking a stark end to an unlikely alliance and leaving onlookers wondering what was next. The hostilities between the former allies intensified when the president criticised Tesla CEO Musk in the Oval Office and the pair then lobbed verbal barbs at each other on their social media platforms, Trump's Truth Social and Musk's X. "The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts," Trump posted. Tesla shares closed down more than 14% on Thursday, losing about $150bn (R2.6-trillion) in market value in the largest single-day decline in value in its history. Minutes after the closing bell, Musk replied "Yes" to a post on X saying Trump should be impeached, an unthinkable move in Congress where Trump's Republicans hold majorities in the two chambers.
