Tesla's Low-Cost EV in Focus as Global Sales Decline
Electric vehicle (EV) maker Tesla (TSLA) is drawing attention with its proposed low-cost EV, as global sales of its autos continue to decline. Last year, CEO Elon Musk already canceled plans for a $25,000 EV, called Model 2. However, the company has since been promoting ideas of launching a more 'affordable' EV this year to beat the competition and expand its market share.
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This year, Tesla's auto sales in China were ousted by domestic player BYD (BYDDF). Moreover, Musk's political inclinations sparked dramatic protests and criticism, which ultimately led to weakening sales of Tesla's EVs globally, especially in European markets.
The History of Tesla's Low-Cost EV
When a Reuters report dated April 5, 2024, claimed that Musk had canceled the $25,000 EV project, Musk immediately commented on his X account saying 'Reuters is lying.' His response took investors by surprise, leaving many wondering why he was disputing widely known facts. Frantic investors questioned whether Musk had changed his mind, but Musk confirmed that the project was indeed dead.
The new affordable EV was expected to be launched in the first half of 2025, but no specific details have been released yet. The only known information is that Tesla plans to produce stripped-down versions of Model 3 and Model Y, which will be 'affordable' and consumers would be able to buy them.
Since the second half of last year, Musk's attention has been divided between his political activities, including his role in leading the infamous DOGE (Department of Government Efficiency) committee and running his business ventures. Tesla faced massive criticism for the CEO's involvement in laying off government staff, which also hurt the company's sales. However, Musk announced last week that he is leaving his role as advisor to the U.S. President Donald Trump and will now refocus his full attention on his companies.
Musk's Pay Deal Hangs in the Balance
Musk's non-business endeavors have also cost him financially. In 2024, he was the lowest paid CEO among the S&P 500 companies, receiving zero salary from his Tesla. Since 2018, his compensation is tied to Tesla's overall performance and depends on meeting specific milestones related to market capitalization, revenue, and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). He has several stock options that are contingent on achieving these milestones.
However, due to the company's dwindling performance, some executives are considering awarding Musk a traditional CEO salary. It remains to be seen whether Musk's full-time return will lead to a full-throttle boost in Tesla's performance.
Is Tesla a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 16 Buys, 10 Holds, and 11 Sell ratings. Also, the average Tesla price target of $282.70 implies 17.5% downside potential from current levels. Year-to-date, TSLA stock has lost 15.1%.
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Global News
17 minutes ago
- Global News
‘Lost his mind': Fallout from Trump-Musk feud shows quick truce unlikely
The very public, very online fallout between U.S. President Donald Trump and his so-called 'First Buddy' Elon Musk spilled over into Friday morning, with Trump saying he's 'not particularly' interested in talking to Musk right now. The president made the comments to ABC News early Friday, when the outlet inquired about reports that the two had a call scheduled for later in the day. 'You mean the man who has lost his mind?' he asked, saying he's not ready to talk to Musk, despite saying Musk wanted to talk to him. Trump seemed rather nonchalant about the issue, although perhaps not yet ready to bury the hatchet, telling CNN Friday morning that he's 'not even thinking about Elon. He's got a problem, the poor guy's got a problem.' Story continues below advertisement 'Oh it's OK,' he told news site Politico. 'It's going very well, never done better.' Trump, one of the most powerful political leaders on the planet, and Musk, the world's richest man, battled openly on Thursday in an extraordinary day of hostilities — largely over social media — that marked a stark end to a close alliance. 1:17 Trump 'very disappointed' in Elon Musk after billionaire calls his budget bill an 'abomination' It began with Musk complaining about the centrepiece of Trump's legislative agenda, which the president at first took in stride. Eventually, Trump let slip that he was disappointed in his former adviser, prompting Musk to unleash a flood of insults and taunts via social media. He accused Trump of betraying promises to cut federal spending, agreed with an X user that the president should be impeached and claimed without evidence that the government was concealing information about the president's association with deceased sex offender Jeffrey Epstein. In another bombshell accusation, Musk insisted that Trump wouldn't have won last year's election without his help. Story continues below advertisement 🚨 NEW: Trump speaks on Elon coming out against the BBB 'I would have won Pennsylvania regardless of Elon…I'm very disappointed with Elon. He knew this bill better than anyone and he only developed a problem when he found out I would cut the EV mandate… When he left he said… — Autism Capital 🧩 (@AutismCapital) June 5, 2025 Trump, not holding back anymore, wrote on his own social platform that Musk had been 'wearing thin' and that he had 'asked him to leave' his administration, adding that the Tesla CEO had 'gone CRAZY.' @realDonaldTrump / Truth Social He even threatened to cancel Musk's companies' contracts and subsidies, a move he said would save 'billions and billions of dollars' for taxpayers. Story continues below advertisement Musk's companies, including Tesla, SpaceX and Starlink, have direct contacts with the American government and, like many other businesses, also benefit from subsidies and tax breaks. In turn, Musk threatened to decommission a space capsule used by NASA to ferry astronauts and supplies to and from the International Space Station, although, a few hours later, he told a user on his X platform that he wouldn't do it. Aside from saying he had no plans to talk to Musk at the moment, Trump largely ignored the feud in his Friday morning social media posts. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy He shared several posts to his Truth Social media site, but didn't bring up the fight, instead attacking the reporting of several media outlets and bragging that 'Our country is BOOMING!' 'AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!' he shared in one post. Story continues below advertisement Opposites attracted (for a time) Trump and Musk, as a pair, initially seemed contrasting. Trump, 78, comes from old-school New York real estate and never appears in public without a suit and tie unless he's on the golf course. Before running for president, he became a household name as a reality television star. Musk, 53, is an immigrant from South Africa who struck it rich in Silicon Valley. In addition to running Tesla and SpaceX, Musk owns the social media company X. He's fashioned himself as a black-clad internet edgelord, and his wealth vastly outstrips Trump's. But Trump and Musk are kindred spirits in other ways: they're experts at generating attention, who enjoy stirring the pot by riling up their opponents. Each has sought more power to accomplish existential quests. Trump assails the federal 'deep state' that resisted him during his first term, while Musk warns about the country going bankrupt from excessive spending and promotes an interplanetary future powered by his rocket technology. Musk endorsed Trump after the Republican candidate was nearly assassinated in Butler, Pa., and he began spending millions to support him. His social media megaphone was a powerful addition to Trump's comeback campaign, magnifying his efforts to court tech leaders and young men online. Trump rarely tolerates sharing the spotlight, but he seemed enamoured by his powerful backer, mentioning him in stump speeches and welcoming him onstage at rallies. Story continues below advertisement View image in full screen FILE – Tesla CEO Elon Musk (R) jumps on stage as he joins former U.S. president and Republican presidential candidate Donald Trump during a campaign rally at the site of his first assassination attempt in Butler, Pa., on Oct. 5, 2024. Jim Watson / AFP via Getty Images After the election, Musk was a fixture around Mar-a-Lago, posing for photos with Trump's family, joining them for dinner and sitting in on meetings. Instead of growing tired of his 'First Buddy,' Trump made plans to bring Musk along to Washington, appointing him to lead a cost-cutting initiative known as the Department of Government Efficiency (DOGE). View image in full screen Tesla and SpaceX CEO Elon Musk and U.S. President Donald Trump appear during an executive order signing in the Oval Office at the White House on Feb. 11, 2025 in Washington, D.C. Andrew Harnik / Getty Images Other politicians, public figures enter the chat Thursday's spectacular infighting left the world stunned and rapt, and politicians in Washington found ways, often humorous, to express their thoughts on the feud. Story continues below advertisement Vice-President JD Vance piped in with a post Thursday night, joking about the tension that had just unfolded. 'Slow news day, what are we even going to talk about?' Vance wrote on X, along with a photo of him and podcaster Theo Von. Slow news day, what are we even going to talk about? @TheoVon — JD Vance (@JDVance) June 6, 2025 Democrat Rep. Alexandria Ocasio-Cortez pithily quipped to a reporter outside the Capitol: 'Oh man, the girls are fighting, aren't they? I would say that this was something that was a long time coming, where we've been seeing that these two huge egos were not long for being together in this world as friends.' On the Trump-Musk feud, @AOC: 'Oh man, the girls are fighting, aren't they?' — Anthony Michael Kreis (@AnthonyMKreis) June 6, 2025 Story continues below advertisement She wasn't the only Democrat to find levity in the situation. Minnesota Rep. Ilhan Oman wrote 'I can't believe he went there,' in response to Musk's allegation that the Epstein files haven't been fully released because Trump is named in them. I can't believe he went there 😮 — Ilhan Omar (@IlhanMN) June 5, 2025 Meanwhile, Democrat Sen. Tina Smith of Minnesota shared a Spotify breakup playlist. Story continues below advertisement 'I don't think you need to be a genius, though, to foresee that this eruptive and public display of divorce was gonna happen at some point,' Democrat Rep. Vicente Gonzalez told CNN on Thursday night. 'I mean, we had wagers going on on the floor.' 'It's like India and Pakistan,' Republican Rep. Ryan Zinke of Montana told The Associated Press, referring to two nuclear-armed nations that recently skirmished along their border. 'It just escalates and neither one of them seem to back down and understand the strength of each other.' 2:52 Musk says Trump 'is in the Epstein files' amid escalating feud Some House Republicans called for cooler heads to prevail. Rep. Troy Nehls of Texas demanded Musk stop attacking Trump and said 'this tit-for-tat going back and forth, isn't helping.' While he praised Musk to CNN as 'very gifted and talented,' Nehls said that 'to start making statements like that, I think, are irresponsible and certainly not healthy. So stop. You've lost your mind.' Story continues below advertisement Rep. Chip Roy of Texas, a hardline conservative who's objected to parts of the bill, told CNN flatly 'no' when asked if he was concerned about Trump and Musk's public breakup. 'I think maybe they should count to 10,' Roy said when asked about Musk's supporting calls for Trump to be impeached. 'I hope it doesn't distract us from getting the job done that we need to,' said Rep. Dan Newhouse, a Republican from Washington state. 'I think that it will boil over and they'll mend fences.' Sen. Ted Cruz, a Texas Republican, was similarly optimistic. 'I hope that both of them come back together because when the two of them are working together, we'll get a lot more done for America than when they're at cross purposes,' he told Fox News host Sean Hannity on Thursday night. Meanwhile, some of Trump's allies plotted revenge. Steve Bannon, a former Trump adviser and host of an influential conservative podcast, told The Associated Press that the president should direct the U.S. government to seize SpaceX. He also encouraged Trump to investigate allegations that Musk uses drugs and 'go through everything about his immigration status' in preparation for potential deportation. 'We'll see how good Elon Musk takes a little of that pressure,' Bannon said, 'because I happen to think a little of that pressure might be coming.' Story continues below advertisement — With files from The Associated Press and Reuters
Toronto Star
24 minutes ago
- Toronto Star
Elon Musk vs. Donald Trump: A detailed breakdown of how they went from mushy bromance to messy breakup
It has been exactly one week since Elon Musk last stood in the Oval Office. Clad in a shirt that read 'The Dogefather,' Musk gratefully accepted a golden key from Donald Trump — a parting gift the president said he gave only to 'very special people.' The tech mogul was stepping away from his role at the Department of Government Efficiency (DOGE), officially ending his 130-day tenure at the Trump administration. LIVE Live updates: Elon Musk, Donald Trump fight continues to escalate; budget proposal could hurt Tesla profits The feud between the U.S. president and the former White House adviser has been escalating on social media and Musk alluded Thursday to a coming LIVE Live updates: Elon Musk, Donald Trump fight continues to escalate; budget proposal could hurt Tesla profits The feud between the U.S. president and the former White House adviser has been escalating on social media and Musk alluded Thursday to a coming 'Elon's service to America has been without comparison in modern history,' Trump said at the time. Musk, sporting a black eye he said came from one of his 14 children , returned the praises: 'The Oval Office finally has the majesty that it deserves, thanks to the president.' ARTICLE CONTINUES BELOW Days later, both men would tear into the other across social media and live TV. In a salvo of posts on his social media outlet X, Musk claimed Trump is 'in the Epstein files' and that he only won the 2024 presidency through Musk's influence. 'Such ingratitude,' he wrote. Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT! — Elon Musk (@elonmusk) June 5, 2025 Trump responded by threatening to tear up Musk's government contracts, leading to a sharp 14 per cent plunge in Tesla's stock price by market close Thursday. The cause appeared to be disagreements on what Trump has deemed his 'Big Beautiful Bill.' But cracks have been present throughout their decade-long relationship. Musk in Trump's first term Musk wasn't always buddy-buddy with Trump. The tech titan backed former Secretary of State Hillary Clinton in her race against Trump in 2016, and was vocal in his criticisms of the president. Days before the 2016 election, Musk told CNBC: 'He's not the right guy. He doesn't seem to have the sort of character that reflects well on the United States.' Regardless, Trump would appoint Musk to his Strategic and Policy Forum alongside other Silicon Valley CEOs a month later. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The appointment wouldn't stick; Musk departed from his roles within the administration in 2017, after Trump withdrew from the Paris Climate Accords: 'Climate change is real. Leaving Paris is not good for America or the world,' he wrote. Three years later, Musk voted for Joe Biden over Trump in the 2020 elections, he said. U.S. President-elect Donald Trump, U.S. musician Kid Rock and Tesla and SpaceX CEO Elon Musk pose for a photo as they attend UFC 309 at Madison Square Garden in New York, on Nov. 16, 2024. KENA BETANCUR AFP via Getty Imag Shifting right After years of voting Democrat, Musk first signalled his shift to the right in May 2022. '(The Democrats) have become the party of division & hate, so I can no longer support them and will vote Republican,' he tweeted. 'Now, watch their dirty tricks campaign against me unfold.' Then, in November — days after purchasing Twitter for $44 billion (U.S.) — Musk used his platform to encourage 'independent-minded voters' to vote for 'a Republican Congress, given that the Presidency is Democratic.' Musk, who had donated to both Democrats and Republicans until that point, began to shift his funding toward right and far-right leaning candidates that year. But his feud with Trump continued, with him suggesting Trump should 'hang up his hat & sail into the sunset' in July of 2022. Contributors Opinion Shannon Gormley: Elon Musk says he's leaving the U.S. government. Canadians should understand what that really means The legacy of Musk's slash and burn to government lives on. Contributors Opinion Shannon Gormley: Elon Musk says he's leaving the U.S. government. Canadians should understand what that really means The legacy of Musk's slash and burn to government lives on. At a campaign rally, Trump shot back that Musk's companies would be 'worthless' without federal funding. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW After some debate, Musk decided to support Florida Gov. Ron DeSantis in the 2024 presidential primaries over Trump; DeSantis even announced his campaign over a glitch-riddled Twitter livecast. But after the governor failed to gain traction among voters, Musk turned his eye to more promising prospects. Tesla and SpaceX CEO Elon Musk with his son X Æ A-Xii join U.S. President Donald Trump as he signs executive orders in the Oval Office of the White House on Feb. 11. JIM WATSON AFP via Getty Images Musk endorses Trump for president Musk and Trump's whirlwind bromance began minutes after a bullet from a would-be assassin grazed the presidential candidate's right ear at a campaign rally in Butler, Penn., on July 13, 2024. 'I fully endorse President Trump and hope for his rapid recovery,' Musk wrote shortly after the incident was reported. Contributors Opinion Stephen Marche: The revenge tragedy of Donald Trump and Elon Musk Trump's White House has long been seen as cruel. Now it's becoming tragic Contributors Opinion Stephen Marche: The revenge tragedy of Donald Trump and Elon Musk Trump's White House has long been seen as cruel. Now it's becoming tragic The tech titan wasted no time throwing his full support behind Trump and joining him on the campaign trail. The following weeks saw Musk spend a total $288 million to help elect Trump and other Republican candidates, according to the Washington Post. The billionaire also announced he would give away $1 million each day to swing state voters who signed a petition from his political action committee (PAC). U.S. President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla vehicle on the South Portico of the White House on March 11. MANDEL NGAN AFP via Getty Images The DOGE Era After his election victory in November, Trump announced that DOGE — an initiative purportedly meant to maximize efficiency and cut wasteful spending — would be led by Musk and former presidential candidate Vivek Ramaswamy. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The White House confirmed Ramaswamy would step away from the project soon after Trump's second inauguration, leaving Musk as its sole head — although the White House was never clear on Musk's exact role at DOGE. He dreamed of cutting $1 trillion in government spending. The following weeks saw Musk and his team gut federal agencies and slash government staff. DOGE would dismantle USAID, tear up billions of dollars worth of research funds for cancer and other illnesses and lead to the departures of tens of thousands of government staff. All the while, Musk would garner vast influence within the Trump administration, from flying on Air Force One and participating in Cabinet meetings to showing up at the Oval Office with his young son. Business Goodbye Mr. Nice Guy? Investors dump Tesla on bet Trump may lash out at Musk through his car company Tesla shares plunged more than 14 per cent on Thursday, wiping out nearly $150 billion of the company's market value. Business Goodbye Mr. Nice Guy? Investors dump Tesla on bet Trump may lash out at Musk through his car company Tesla shares plunged more than 14 per cent on Thursday, wiping out nearly $150 billion of the company's market value. 'I love @realDonaldTrump as much as a straight man can love another man,' Musk wrote on X in February. Musk's close association with Trump and his activities at DOGE resulted in public backlash against the billionaire and his companies. Global protests against Tesla led to attacks on dealerships and a plunge in its stock price. Trump soon came to the defence of his company, parading several Teslas at a White House press conference and telling reporters he even bought one of his cars in March — although experts predicted the public support would backfire. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Musk leaves DOGE Musk's time in the Trump administration wasn't all smooth sailing. In April, Musk got into a public spat over automotive tariffs with Trump's top trade adviser Peter Navarro, calling him a 'moron' and 'dumber than a sack of bricks.' White House press secretary Karoline Leavitt stayed out of the feud: 'Boys will be boys, and we will let their public sparring continue,' she said. Later that month, Trump suggested at a cabinet meeting that Musk's time in his administration may be coming to an end. 'At some point, he wants to get back home to his cars,' he said, after praising Musk for his work. Provincial Politics Elon Musk's falling out with Donald Trump won't revive Starlink deal, Doug Ford says The Ontario government won't revive its $100-million contract with Starlink that was cancelled in March in retaliation for Trump's tariffs. Provincial Politics Elon Musk's falling out with Donald Trump won't revive Starlink deal, Doug Ford says The Ontario government won't revive its $100-million contract with Starlink that was cancelled in March in retaliation for Trump's tariffs. That point came just a month later, on May 30, after reaching the maximum amount of days he could serve as a government employee. In that time, DOGE claims to have tallied $180 billion (U.S.) in savings — well short of its $1 trillion goal. Its information has also been riddled with errors and embellishments. Days earlier, Musk told CBS he was 'disappointed' by the price of Trump's 'Big Beautiful Bill,' continuing that the legislation would further inflate the U.S. deficit. The Congressional Budget Office estimates the bill would add $3.8 trillion to the deficit by 2034. 'I think a bill can be big or it can be beautiful, but I don't know if it can be both,' Musk said at the time. The disagreement would soon blossom into an all-out brawl between Musk and Trump. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The messy breakup Within 100 hours of his departure from DOGE, Musk fired his first volley at Trump's spending bill (without naming the president directly). 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,' he wrote on X Tuesday. 'Shame on those who voted for it.' Trump shot back Thursday, telling reporters that Musk 'knew every aspect of this bill — better than almost anybody — and he never had a problem until right after he left.' 'False,' Musk retorted mere minutes later. 'This bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!' President Donald Trump, right, presents a 'key to the White House' to Elon Musk during a news conference in the Oval Office of the White House in Washington, D.C., on May 30, 2025. Allison Robbert/AFP TNS The tech titan then broadened his attack. 'Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,' he wrote. 'Such ingratitude.' Trump then took to his own social media platform, Truth Social, writing: 'Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!' Live Updates Republicans urge Donald Trump and Elon Musk to end their feud WASHINGTON—As the Republican Party braces for aftershocks from President Donald Trump's spectacular clash with Elon Musk, lawmakers and conser… Live Updates Republicans urge Donald Trump and Elon Musk to end their feud WASHINGTON—As the Republican Party braces for aftershocks from President Donald Trump's spectacular clash with Elon Musk, lawmakers and conser… 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts,' Trump said in a followup post. 'I was always surprised that Biden didn't do it!' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW In response, Musk threatened to 'immediately' decommission SpaceX's Dragon spacecraft — used to ferry NASA astronauts and supplies to the International Space Station — 'In light of the President's statement about cancellation of my government contracts.' He would later pull back on the threat. Musk also made another accusation. 'Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public,' he said. 'Have a nice day, DJT!' For his part, Trump defended his spending bill, writing on Truth Social: 'It's a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn't pass, there will be a 68% Tax Increase, and things far worse than that. I didn't create this mess, I'm just here to FIX IT.' But on Friday morning, Trump signalled he was no longer interested in speaking about his former ally: 'I'm not even thinking about Elon. He's got a problem, the poor guy's got a problem,' he told CNN.
Toronto Star
28 minutes ago
- Toronto Star
Live updates: Elon Musk, Donald Trump fight continues to escalate; budget proposal could hurt Tesla profits
A public feud between Elon Musk and U.S. President Donald Trump has escalated on social media since Musk first criticized a Trump spending bill. Musk said on Twitter he was planning an announcement Friday. Follow our live coverage. Trump-Musk feud The spat between Trump and Musk began after the former White House adviser criticized the U.S. president's 'Big Beautiful Bill' The two spent much of Thursday trading insults on social media Updated 29 sec ago Musk vs. Trump: How it went from mushy bromance to messy breakup By Kevin Jiang Staff Reporter Tesla CEO Elon Musk, jumps on stage as he joins former Donald Trump during a campaign rally at site of an assassination attempt in Butler, Penn., on Oct. 5, 2024. JIM WATSON AFP via Getty Images It has been exactly one week since Elon Musk last stood in the Oval Office. Clad in a shirt that read 'The Dogefather,' Musk gratefully accepted a golden key from Donald Trump — a parting gift the president said he gave only to 'very special people.' The tech mogul was stepping away from his role spearheading the Department of Government Efficiency (DOGE), officially ending his 130-day tenure at the Trump administration. In that time, his operation dismantled USAID, threatened every federal worker with termination and tore up billions of dollars worth of research funds for cancer and other illnesses. 'Elon's service to America has been without comparison in modern history,' Trump said at the time. Musk, sporting a black eye he said came from one of his 14 children , returned the praises: 'The Oval Office finally has the majesty that it deserves, thanks to the president.' Days later, both men would tear into the other across social media and live TV. In a salvo of posts on his social media outlet X, Musk claimed Trump is 'in the Epstein files' and that he only won the 2024 presidency through Musk's influence. 'Such ingratitude,' he wrote. Read more from the Star's Kevin Jiang Updated 12 mins ago House leader Jeffries sees 'opportunity' in Trump-Musk feud By The Associated Press The House Democratic Leader calls the Trump-Musk breakup feud a 'welcome development' in his efforts to defeat the GOP tax breaks and spending cuts package. 'To the extent that Musk has declared the bill a 'disgusting abomination,' we agree,' said Rep. Hakeem Jeffries. 'The opportunity that exists right now is to kill the GOP tax scam,' he said. 'We have to keep the pressure on House Republicans and Senate Republicans to do the right thing.' Updated 14 mins ago Dems urged to take advantage of GOP confusion amid Trump, Musk fallout By The Associated Press In the final event of World Pride's human rights conference, Democratic Rep. Becca Balint, Vermont's first woman and first openly gay person to represent the state in Congress, urged Democrats to take advantage of the confusion within the GOP amid Trump and Musk's public fallout, especially to protect transgender rights. 'We do have an opportunity here because our colleagues don't know who to support and they're scared, and we must exploit that,' Balint said. Rep. Emily Randall, who won her race for Washington's 6th Congressional District in 2024, said the tension between Trump and Musk 'is reflective of the chaos within the Republican party.' ARTICLE CONTINUES BELOW Updated 49 mins ago Republicans urge Donald Trump and Elon Musk to end their feud By Seung Min Kim And Chris Megerian/The Associated Press Speaker of the House Mike Johnson, R-La., flanked by Majority Whip Tom Emmer, R-Minn., left, and Rep. Mark Messmer, R-Ind., talks with reporters to discuss work on President Donald Trump's bill of tax breaks and spending cuts, at the Capitol in Washington this week. J. Scott Applewhite/AP WASHINGTON—As the Republican Party braces for aftershocks from President Donald Trump's spectacular clash with Elon Musk, lawmakers and conservative figures are urging détente, fearful of the potential consequences from a prolonged feud. At a minimum, the explosion of animosity between the two powerful men could complicate the path forward for Republicans' massive tax and border spending legislation that has been promoted by Trump but assailed by Musk. 'I hope it doesn't distract us from getting the job done that we need to,' said Rep. Dan Newhouse, a Republican from Washington state. 'I think that it will boil over and they'll mend fences' Sen. Ted Cruz, a Texas Republican, was similarly optimistic. 'I hope that both of them come back together because when the two of them are working together, we'll get a lot more done for America than when they're at cross purposes,' he told Fox News host Sean Hannity on Thursday night. Read more from the Associated Press Updated 3 hrs ago What's next for Trump-Musk relationship? By The Associated Press After Thursday's spectacular blow-up between President Donald Trump and Elon Musk — which unfolded in real time — the big question for this Friday is: What next? In a call with ABC News on Friday, Trump called Musk a 'man who has lost his mind.' According to the network's correspondent, Jon Karl, the president said he is 'not particularly' interested in speaking with Musk directly. Still, Trump said Musk wants to talk to him, Karl reported. Shares of Elon Musk's electric vehicle maker plunged more than 14% as investors dumped holdings, as investors fear his dispute with President Donald Trump could end up hurting the company. Updated 3 hrs ago Musk criticism of 'Big Beautiful Bill' kicked off spat By The Associated Press In this photo illustration, social media posts by U.S. President Donald Trump and Elon Musk are displayed on smartphones. Justin Sullivan Getty Images Johnson confident of passing big tax and immigration bill despite Musk criticism Speaker Mike Johnson is expressing confidence that the growing dispute between President Donald Trump and billionaire Elon Musk will not harm the GOP's prospects of passing Trump's big tax and immigration bill. Musk has tweeted on X that lawmakers should call lawmakers and 'KILL the BILL.' Johnson told reporters that he exchanged text messages with Musk on Thursday, but he would not reveal the content. He also said he was in constant communication with Trump. 'Members are not shaken at all,' Johnson said of the dispute. 'We're going to pass this legislation on our deadline.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Updated 3 hrs ago Elon Musk could lose big profits for Tesla under a new GOP budget proposal By The Associated Press U.S. President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla vehicle on the South Portico of the White House in March. MANDEL NGAN AFP via Getty Images Republican senators have inserted language into the budget bill amid the Musk v. Trump feud that would eliminate fines for gas-powered cars that fall short of fuel economy standards. Tesla has a thriving side business selling 'regulatory credits' to other automakers to make up for their shortfalls. The credits business was widely thought vulnerable to cuts even before the feud, and Musk has downplayed its importance. But the changes would hurt Tesla as it reels from boycotts. Credit sales jumped by a third to $595 million in the first three months of the year as total revenue slumped. Updated 3 hrs ago Elon Musk pulls back on threat to withdraw Dragon spacecraft By The Associated Press This photo provided by NASA shows support teams onboard the SpaceX recovery ship MEGAN work around a SpaceX Dragon spacecraft shortly after it landed with NASA astronauts Nick Hague, Suni Williams, Butch Wilmore, and Roscosmos cosmonaut Aleksandr Gorbunov aboard in the water off the coast of Tallahassee, Florida, in March. SpaceX chief Elon Musk said on June 5, 2025 that he would begin 'decommissioning' his company's Dragon spacecraft, vital for ferrying NASA astronauts to and from the International Space Station, after U.S. President Donald Trump threatened to terminate his government contracts.. KEEGAN BARBER NASA/AFP via Getty Images Musk is dialing back his threat to decommission a capsule used to take astronauts and supplies to the International Space Station for NASA. The threat came as President Donald Trump and Musk argued on social media on Thursday. Trump said he could cut government contracts given to Musk's rocket company, SpaceX. Musk responded by saying SpaceX would begin decommissioning its Dragon spacecraft. In this photo illustration, social media posts by U.S. President Donald Trump and Elon Musk are displayed on a smartphone . Justin Sullivan Getty Images It was unclear how serious Musk's threat was, but several hours later — in a reply to another X user — he said he wouldn't do it. SpaceX is the only U.S. company capable right now of transporting crews to and from the space station, using its four-person Dragon capsules. It could also pay Russia to ferry astronauts. Updated 3 hrs ago Donald Trump and Elon Musk break up, and Washington holds its breath By The Associated Press In this photo illustration, social media posts by U.S. President Donald Trump and Elon Musk are displayed on smartphones. Justin Sullivan Getty Images WASHINGTON—Maybe it was always going to end this way, with two billionaires angrily posting about each other on social media, fingers flying across pocket-sized screens as their incandescent feud burned hotter by the minute. But even if the finale was predictable, that didn't make it any less shocking. After long months when Donald Trump and Elon Musk appeared united in their chaotic mission to remake Washington, their relationship imploded this week like a star going supernova. It began with Musk complaining about the centerpiece of Trump's legislative agenda, which the president at first took in stride. Eventually Trump let slip that he was disappointed in his former adviser, prompting Musk to unleash a flood of insults and taunts. He accused Trump of betraying promises to cut federal spending, shared a suggestion that the president should be impeached and claimed without evidence that the government was concealing information about his association with infamous pedophile Jeffrey Epstein. Perhaps most viciously, Musk insisted that Trump wouldn't have won last year's election without his help. Read more from the Associated Press ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW
