American billionaire Elon Musk's business empire in the United States is under threat after an escalation of a dispute with US President Donald Trump. Musk's foray into politics, reckless flirting with the far right, and confrontation with the White House owner may "help" the businessman lose a large part of his capital. Bloomberg writes about this, UNN reports.
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What began as businessman Elon Musk's fascination with right-wing populism has become a defining - and potentially damaging - chapter in his business career, the publication writes.
By supporting Donald Trump's MAGA movement and far-right parties in Europe, Musk has alienated a significant portion of his initial customer base. And this has led to the destruction of the Tesla brand, a drastic drop in its sales, and a loss of market share around the world.
To top off the failures that Musk has reaped in recent months, a high-profile conflict occurred this week between him and his patron, President Donald Trump. The dispute between the two public men escalated into a real personal and public rift, causing threats of revenge from the man who controls the most powerful government in the world.
Simultaneously burning bridges with both his customers and the political movement he has funded and amplified for months, Musk now faces a rare combination of threats: a collapse of brand loyalty, volatile revenues, and rising legal and regulatory risks.
Tesla Inc. sales are already falling under the burden of partisan responsibility. SpaceX, long considered a strategic national asset, is facing increased scrutiny from the state due to the changing vector of political winds.
And the effect of the experiment with the social network X - Musk's project to stimulate "freedom of speech" worth 44 billion dollars - which was fueled by Musk's proximity to the White House and advertising funds, is slowly fading away.
Elon is not working for the benefit of his shareholders. Musk's behavior is leading to the disintegration of the Musk empire in real time
With enemies on both flanks, Musk finds himself at the center of a storm fueled by consumer rebellion and political hostility.
No one on the right will buy Tesla, no one on the left will buy Tesla. Elon is a man without a country
Bannon added that he is "in constant negotiations at the highest level" in the Trump administration to encourage them to revoke Musk's security clearance and use the Defense Production Act to seize SpaceX and Starlink on the grounds that they are vital to US national security.
Even if Trump does not take such extreme measures, the White House has no shortage of response options.
Let us remind you
POLITICO previously reported that the White House is trying to reconcile Trump with Musk after their public dispute. Tesla's shares fell by $150 billion, and Musk's fortune decreased by $34 billion.