Clash of Titans: Trump vs. Musk Over Tax Bill
President Donald Trump has taken issue with Elon Musk regarding the latter's criticism of a major tax-cutting and spending bill. Musk argues against the bill due to potential federal deficit increases, while Trump questions Musk's motivations and suggests cutting government contracts with Musk’s companies. This conflict has impacted stock prices.
President Donald Trump has expressed disappointment with Elon Musk's vocal opposition to a central tax-cut and spending bill underpinning Trump's administration. Trump's concern focuses specifically on Musk's criticism driven by proposed cuts to electric vehicle tax credits.
The spat between these powerful figures has affected stock market dynamics. Tesla's stock plunged over 15%, and Trump's media company saw a 7.3% drop. The tension illustrates broader worries over this bill's potential to escalate federal deficits—an issue Musk underscores.
Market analysts point to the shifting dynamics between political power and corporate influence. While Musk's stance highlights fiscal concerns, Trump's response may impact Musk's businesses through government contract reconsiderations, adding volatility to market indices and investor sentiment.
(With inputs from agencies.)
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