“From Tesla to Trouble: Is Musk’s KGF Era Over?”
🚨 The political bromance between Elon Musk and Donald Trump is officially over.
Once allies, they’re now engaged in a high-profile public feud—and it all started with Trump’s “One Big Beautiful Bill Act.”
🧨 Impact of the Bill on Elon Musk
🚗 1. Tesla's Profitability Takes a Hit
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Loss of EV Tax Credits:
Removes $7,500 incentive per car → makes Tesla models less competitive, especially against ICE cars and Chinese EVs. -
Regulatory Credits Vanish:
Tesla earned $2.76 billion in 2024 from selling environmental credits. The bill eliminates this stream.
📉 Musk’s projected gross margin shrinks from ~18.4% to ~15.4%, a serious drop in an already competitive EV market.
📉 2. Stock Price Pressure
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Investors react negatively to policy changes that hurt EV sales and profitability.
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Tesla stock may underperform vs. market or other tech/auto firms in short term.
🔻 Analysts have already lowered Tesla's revenue growth outlook for 2026–2027.
🛰️ 3. SpaceX: Government Risk Exposure
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Musk’s public fallout with Trump puts NASA and DoD contracts at potential political risk.
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If Trump returns to power or influences funding, Musk may find SpaceX’s U.S. government relationship strained.
⚠️ SpaceX currently holds $15B+ in contracts with U.S. agencies.
🏛️ 4. Loss of Political Influence
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Musk was once a trusted voice in conservative and tech-political circles.
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After publicly attacking the bill—and then Trump himself—he risks:
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Being shut out of policy conversations.
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Losing bipartisan support for Tesla/SpaceX ventures.
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❌ Musk lost his unofficial advisory role (formerly floated as head of the "DOGE" department—Department of Government Efficiency).
💬 5. Public Image Fracture
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Right-leaning base: Some feel betrayed by his split from Trump.
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Progressives: Already skeptical of his union stance, now doubt his climate commitment due to Tesla’s pricing war and layoffs.
Here’s why Elon is pushing back hard:
🔴 This is not just politics. It’s a direct economic blow to Musk’s clean energy empire.
📌 Why This Matters:
This feud isn't about ego—it's about the future of American innovation, EV policy, and the intersection of business and politics.
💡 Musk's Clean Energy Vision (The Idealistic Side)
Elon Musk has repeatedly positioned his companies — especially Tesla, SolarCity, and even SpaceX — as part of a grand mission-
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Tesla built the world’s largest battery in Australia for grid stabilization.
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Musk advocated for a carbon tax (which would hurt short-term business margins).
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Tesla made its patents open-source to encourage wider EV adoption.
Musk’s clean energy push is also undeniably a business strategy that:
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Has earned billions in government subsidies, regulatory credits, and tax incentives.
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Used hype around sustainability to secure investors and public support.
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Leveraged EV credits to keep Tesla profitable in early years (Tesla made more from selling regulatory credits than from cars in some quarters).
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