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Independent Singapore
15 hours ago
- Business
- Independent Singapore
Elon Musk, Twitter, and the billionaire balancing act – Is it really a crisis?
UNITED STATES: Still recall the sensational, buzz-worthy moment when Elon Musk bought Twitter for US$44 billion? It was Oct 27, 2022, a day that redesigned social media and changed the world's perception of how billionaires play. In a post on Facebook, one user tried to analyse the financial position of Musk amid speculations that he is in 'hot water' money-wise. Initially, the poster refuted what many perceived after Musk bought Twitter. According to him, the world presumed at the time that Musk had an extra US$44 billion in the bank. However, in truth, just like most excessively wealthy individuals, his net value was (and is) mainly locked in assets, mainly Tesla stock. To fund the transaction, Musk did what many magnates do — he tapped into his current assets. Tesla shares were a chunk of the equation, either directly or indirectly. However, to fix the narrative, Tesla stock wasn't dropping when he did the acquisition. According to a commenter to the post, 'on the day he clinched the Twitter contract, Tesla stock floated at around US$220 to US$230, fast-forward to June 2025, and Tesla stock sits at almost US$301, even higher than it was back then.' Likewise, some commenters have pointed out it 'has even soared to US$376' on recent peaks. So, no, the description that he's under pressure from banks, like how some overhyped headlines speculate, is not accurate. His warranty has more value now than when he made the transaction, and, contrary to the view that he received a huge credit, some contend that much of the cash came from equity holders, such as Saudi Prince Al-Waleed bin Talal, allegedly obtained with a single phone call. But there's more to the story than just numbers It's not just about money. Musk has constantly stimulated 'storms,' and his recent acts have fanned the flames of obsessive reactions. Detractors cite his collaboration with contentious figures and his positioning with prickly views, particularly about matters associated with South Africa and international politics. One commenter said blatantly, 'I hope he doesn't bounce back.' Others went further: 'Bounce back where? May he lose everything.' These views mirror huge disapproval with what some see as the treacherous combination of affluence, clout, and ideology. See also S'pore ambassador named in Brazilian court in graft probe On the business side, the surge of Chinese EV builders is real—they're quickly seizing global market share with viable pricing and remarkable quality. Tesla, while still a driving force, no longer remains uncontested. The rich don't always have it easy – just different One common fallacy is that tycoons like Musk have billions of dollars in cash at their command. Not so. They may be oozing with assets, but not necessarily oozing with cash. Many people often equate him with Jeff Bezos, who had sufficient cash flow to provide his former wife with more than US$100 billion in a divorce agreement; however, much of that 'cash' came from selling stocks, not withdrawing money from a bank account. Then there's the provocative matter of taxation and debt acquisition. Musk exploited a technicality: he can borrow against his assets without activating capital gains duties. One annoyed commenter put it this way: 'If it's not a gain, why can it be used as collateral? Let us play the same game, too.' It's a legitimate question, and one that's prompting demands for tax restructuring at the highest levels. See also Why did Musk do a livestream of migrant crisis from the border? So, what's really going on? Notwithstanding the drama and headlines, Elon Musk is not at present in a perilous financial abyss. His resources are up and about, not down. His Twitter purchase is obviously still being discussed in terms of value and significance, but whether you like or fume over him, his story is a window where the world can peep into how affluence, power, and clout operate in the 21st century. Being rich doesn't make one invulnerable to pressure; it just changes how pressure appears or what it looks like. Whether it's navigating regulatory inspections, steering investor expectations, or shaping public opinion, the risks at the top are high. Also, as one commenter mockingly said: 'Why don't they just print money—they are the presidents after all.' For sure, that is said in jest, but it realistically captures the cynicism many people feel about how power operates in contemporary times.
The Herald
3 days ago
- Business
- The Herald
Trump says he has no plans to speak to Musk as feud persists
The White House statements came one day after the two men battled openly in an extraordinary display of hostilities that marked a stark end to a close alliance. Tesla stock rose on Friday, clawing back some losses from Thursday's session, when it dropped 14% and lost $150bn (R2.6-trillion) in value, the largest single-day decline in the company's history. Musk's high-profile allies have largely stayed silent during the feud. But one, investor James Fishback, called on Musk to apologise. 'President Trump has shown grace and patience at a time when Elon's behaviour is disappointing and frankly downright disturbing,' Fishback said. Musk, the world's richest man, bankrolled a large part of Trump's 2024 presidential campaign. Trump named Musk to head a controversial effort to downsize the federal workforce and slash spending. Trump feted Musk at the White House a week ago as he wrapped up his role as head of the department of government efficiency. Musk cut only about half of 1% of total spending, far short of his brash plans to axe $2-trillion (R355-trillion) from the federal budget. Since then, Musk has denounced Trump's tax-cut and spending bill as a 'disgusting abomination'. His opposition is complicating efforts to pass the bill in Congress where Republicans hold a slim majority. Trump's bill narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Non-partisan analysts say the measure would add $2.4-trillion (R42.6-trillion) in debt over 10 years. House speaker Mike Johnson said he has been texting with Musk and hopes the dispute is resolved quickly. 'I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it,' Johnson said on CNBC.
Wall Street Journal
4 days ago
- Automotive
- Wall Street Journal
Tesla, DJT Stocks Rally After Musk-Trump Farrago
Elon Musk and President Trump in the White House on May 30. Their feud escalated Thursday, knocking Tesla's stock. (Nathan Howard/Reuters)
Fast Company
4 days ago
- Automotive
- Fast Company
Trump-Musk feud: Will Tesla stock price bounce back today?
The most powerful man in the world and the richest man in the world finally turned on each other. Yesterday, President Donald Trump and Tesla CEO Elon Musk had a full-scale war of words that seems to have been the final nail in the coffin for their bromance, which had persisted since Musk endorsed Trump for president in the summer of 2024. But it wasn't only their bromance that took a beating yesterday. Tesla's stock price (Nasdaq: TSLA) did, too. Shares fell nearly 15% as investors feared that the rift between Trump and Musk could lead to troubles for the electric car maker. How are TSLA shares performing the morning after the dust-up? Here's what you need to know. Trump-Musk feud crashes TSLA stock Yesterday saw the arrival of something that many saw coming from a mile away: the inevitable turn of Donald Trump and Elon Musk against each other. However, few people probably expected the event to unfold as publicly in real-time as it did, with the president and Tesla CEO exchanging accusations, insults, and allegations on the social media platforms that they own, Truth Social and X. The feud spiraled out of Elon Musk's increasing vocal opposition in recent days to the president's proposed 'One Big Beautiful Bill' that would see billions worth of tax cuts go to the richest Americans while adding an estimated $2.4 trillion to the deficit. Yesterday, Musk called the bill a 'disgusting abomination.' Trump then addressed Musk's comments with reporters, saying he and Musk 'had' a great relationship and adding, 'I don't know if we will anymore.' From there, things quickly spiraled. While the spectacle provided hours of entertainment and fascination to general audiences—and gave journalists plenty to write about—Tesla investors were probably dying a little inside with each social media volley. Shares in Elon Musk's electric car company continued to crash throughout the day as the Trump-Musk feud intensified. By the end of trading yesterday, TSLA shares had fallen 14.26% to $284.70 per share—wiping more than $150 billion from Tesla's market cap—its largest single-day loss in its history. But now it's the morning after—and both investors and the two men involved in the feud have, hopefully, had time overnight for a breather. Indeed, it seems that at least Tesla investors have, as TSLA shares are moving upward in early-morning trading. TESLA rises in premarket trading As of the time of this writing, TSLA shares are currently trading up about 3.96% to $296 per share in premarket trading. Tesla's share price recovery comes after Musk appeared to signal on X that he was open to healing the rift that had emerged between him and Trump, notes Reuters. In a post on X, billionaire investor Bill Ackman wrote that 'I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country. We are much stronger together than apart.' Musk then responded to this post, saying, 'You're not wrong.' Shortly after, the recovery in Tesla's stock price began. However, given that TSLA shares have only regained a fraction of what they lost yesterday, it's likely that investors are erring more on the side of cautious optimism than absolute certainty that Trump and Musk will make up. Investors are still probably very likely worried about just how bad a continuing feud could be for Musk's business interests. The president at one point threatened Musk's companies' government contracts. If the president so wished, he could also make life much more difficult for Musk's publicly traded company, Tesla, by hindering its upcoming robotaxi rollout through regulations or introducing other measures that would make the car company's business more difficult. TSLA stock has had a horrible 2025 Yesterday's dramatic share price drop in Tesla was nothing less than horrifying for most Tesla investors. The nearly 15% drop was the single worst drop ever in Tesla's share price in one day, noted Reuters. At the same time, Tesla's shares dropping is something investors are used to this year. While Tesla shares surged to an all-time high in December, after Musk and his donations helped return Trump to the White House, the stock has taken a beating ever since Trump took office in January. Before yesterday, there were two big reasons for TSLA's 2025 share price trouble: Tesla's deteriorating brand image among consumers who found Elon Musk's involvement in politics and the Department of Government Efficiency (DOGE) off-putting and President Trump's 'Liberation Day' tariffs, which threatened to raise prices. After yesterday, a third contributing factor to TSLA's price drop in 2025 is now the Trump-Musk feud. Since the beginning of the year, Tesla shares had fallen nearly 30% as of yesterday's close. From a high of over $428 in January, Tesla shares bottomed out in April at below $218. Until yesterday, they had managed to claw back some of that loss, rising to above $360 in late May. Then came yesterday's bromance bust-up—and that nearly 15% decline. Where TSLA stock goes from here largely depends on the mood of the two men in the days ahead.
Forbes
4 days ago
- Business
- Forbes
Forbes Daily: Tesla Takes A Hit From Trump And Musk's Messy Feud
The alliance between the world's richest man and President Donald Trump broke down Thursday in typical reality show fashion: a messy blowup. Elon Musk and Trump traded barbs Thursday, after Musk amped up his criticism this week of Trump's sweeping policy bill. Musk, who donated more than $250 million to help elect Trump, accused the president of 'ingratitude,' suggesting he would have lost the election without him. Trump threatened to remove Musk's government contracts, and Musk later backed a user's suggestion that Trump be impeached. All the fighting isn't helping Tesla, which was already struggling due to Musk's polarizing political actions. The EV-maker's stock plunged 14% by the end of the day, and the feud could create even bigger problems for Tesla if Trump turns up the heat on federal investigations into the company. Musk signaled he was open to a truce, and White House officials reportedly scheduled a call with him. Citadel CEO Ken Griffin Jamel Toppin/Forbes Hedge fund billionaire and GOP donor Ken Griffin voted for President Donald Trump in the 2024 election, but during the Forbes Iconoclast Summit Thursday, the Citadel founder slammed the president's tariff policies and the GOP's signature spending bill. Griffin, who Forbes estimates has a net worth of $44.3 billion, criticized the legislation for increasing the ballooning federal debt, and warned tariffs have 'taken their toll already on our economy.' Boeing has been making steady progress toward righting its commercial airliner business under new CEO Kelly Ortberg, and the spectacular collapse of the relationship between Trump and his former first buddy Elon Musk could provide a lift for its struggling space division. The blowup could have a payoff for Boeing in three areas: its struggling Starliner crew capsule program; the embattled Artemis moon landing program, for which Boeing produces giant rockets; and potentially United Launch Alliance, its rocket joint venture with Lockheed Martin. Trump's tariffs are intended to bring jobs back to the U.S. and benefit small businesses, but a new report from the National Federation of Independent Business shows they've resulted in uncertainty and decelerated hiring. Just 34% of small businesses said they had unfilled job openings, a decline from nearly 50% two years ago, and in a concerning sign, only 12% expect to create new jobs in the next three months. Jeremy Allaire, CEO of Circle © 2025 Bloomberg Finance LP In the first-ever stablecoin IPO, Circle debuted Thursday on the New York Stock Exchange, leading shares to surge as much as 235% and making its CEO Jeremy Allaire a billionaire. It's arguably crypto's most significant public market event since Coinbase went public in 2021, as stablecoins are increasingly drawing the attention of financial giants and tech firms. Chris Wade, the founder of cyber startup Corellium, received a pardon from President Donald Trump, and now he's selling his company for $200 million to Cellebrite, one of the largest providers of phone forensics tools. The merger promises to give law enforcement unprecedented tooling for extracting data from seized electronics, and Wade, who avoided prison time by doing undercover work for the Department of Justice, will become Cellebrite's chief technology officer. President Donald Trump has few qualms about using power to turn a profit, writes Forbes' Dan Alexander, and when it comes to crypto, he's cashing in. He had already made about $1 billion, according to Forbes' calculations, and there are hundreds of millions—perhaps even billions—more to come. A federal judge temporarily blocked President Donald Trump's order to ban the entry of Harvard's international students into the U.S., the latest legal blow to the president's bid to crack down on the university's ability to enroll students from abroad. In a filing, Harvard argued that the presidential proclamation was not intended to protect the 'interests of the United States' but rather an effort by Trump to 'pursue a government vendetta' against the Ivy League school. There were more than 6,700 international students enrolled at Harvard during the 2024-25 academic year, per the university. Larry Jackson, the 44-year-old CEO of $400 million music startup Gamma, is releasing Mariah Carey's 16th album, and Carey is counting on him to help break the Beatles' record of No. 1 hits. The superstar singer's new single, 'Type Dangerous,' is out today, and if it reaches No. 1, the Queen of Christmas would share the throne with the Fab Four—and could surpass them. 'She's been a part of the machine for her entire career,' Jackson says. 'It's about unfinished business and it's about independence.' President Donald Trump's travel ban makes an exception for international athletes traveling to the U.S. for sporting events, but it's at the discretion of Secretary of State Marco Rubio, who has yet to provide a full list of events that qualify. Sports tourism generated $114.4 billion in the U.S. in 2024, and there are several major events set to take place in the near future, including this summer's FIFA Club World Cup and the 2028 Summer Olympics in Los Angeles. President Donald Trump said on Truth Social that he spoke with Chinese President Xi Jinping Thursday, and while he offered few details, he described the conversation as 'very good.' The president has been angling for a call with Xi for months, after sharply reducing the tariff rate he imposed on China earlier this year, but has also taken other actions targeting the country—including revoking visas for Chinese students in the U.S. The Indiana Fever's Caitlin Clark Michael Conroy/Associated Press Optimism for the WNBA's future is much bigger than the hype surrounding Indiana Fever superstar Caitlin Clark. During the 2024 regular season, league-wide attendance reached 2.4 million—up 48% year-over-year—and more than 54 million unique viewers tuned in to national telecasts. Still, beyond a handful of transactions involving tiny slivers of teams, there hasn't been much data to suggest how the momentum is translating to franchise valuations. That is about to change. The New York Liberty recently sold a significant minority share—a percentage in the 'mid-teens,' according to a person with knowledge of the deal—at a $450 million valuation, and the Connecticut Sun are currently on the market, seeking either a new limited partner or a control sale. In the meantime, Forbes' is publishing its first-ever ranking of the WNBA's most valuable teams, with the Liberty on top at $400 million—a price that nods to the recent stake sale but also acknowledges that any majority deal that separated the team from its current ownership would likely come at a discount because the franchise would no longer control its home arena, Brooklyn's Barclays Center. The Atlanta Dream set the league's floor at $190 million, and the average for the WNBA's existing 12 teams sits at $272 million. That value is 14.4 times average revenue—far exceeding the multiple in the National Women's Soccer League (8.8x) as well as in men's leagues including the NBA (11.7x), MLS (9.3x) and the NFL (9x). But these prices don't reflect the WNBA as it exists today. Rather, they are bets on the potential of the league, and an expectation that it is reaching a tipping point. WHY IT MATTERS 'The WNBA will face a significant hurdle this off-season with the negotiation of a new collective bargaining agreement as players seek major raises, but investors are focused on a bright future that starts with the league's new national media deals, which are set to pay roughly $200 million a year starting in 2026,' says Forbes assistant managing editor Brett Knight. 'Meanwhile, the Golden State Valkyries, three weeks into their inaugural season, have booked jaw-dropping sponsorship and ticket sales that outpace some clubs in MLS, a more established men's league. The financial reality of women's basketball is changing incredibly quickly.' MORE Why Caitlin Clark Is One Of The World's 100 Most Powerful Women In 2024 The Supreme Court ruled Mexico can't legally sue U.S. gun manufacturers Thursday, dealing a blow to gun control advocates who argued the lawsuit would hold the companies accountable for gun violence: $10 billion: The amount Mexico's government asked the companies to pay in damages for allegedly 'deliberately aid[ing] and abett[ing] the unlawful sale of firearms' to Mexico's drug cartels 2005: The year the Protection of Lawful Commerce in Arms Act was passed, which protected firearms companies from being sued for criminal activities that involve their products '[T]he manufacturers do not directly supply any dealers,' Justice Elena Kagan wrote in the court's opinion on the limits of the Mexican government's case Small businesses are the backbone of the U.S. economy, but starting and running one isn't easy. Forbes' new Small Business Toolkit aims to help you beat the odds, from filing and paying taxes, managing workers and benefits, acquiring small business loans and more. Our aim is to help you navigate the uncertainty of the Trump era, including information about tariffs and the shifting lending rules at the Small Business Administration. Legendary short seller Jim Chanos told the Forbes Iconoclast Summit audience that he has a new target. Which auto company is he betting against? A. Sonic Automotive B. Ford C. Carvana D. Tesla Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
