SpaceX and Starlink under fire: how Musk’s political ties deepen Tesla’s 2025 crisis

Tesla is facing a deepening crisis in 2025 as its shares have plummeted following a public feud between CEO Elon Musk and former President Donald Trump. The conflict began after Musk criticized Trump's tax bill, which Trump retaliated against by threatening to cut government contracts for Tesla and Musk's other companies, SpaceX and Starlink.

Since January, Tesla has lost over $380 billion in market value, making it the worst-performing large-cap stock this year. JPMorgan analysts warn that if the tax bill passes, Tesla could face a $1.2 billion profit loss for the year.

Musk's political ties have brought increased scrutiny to SpaceX and Starlink, leaders in space launches and satellite internet, complicating the situation further. The clash highlights how Musk's political entanglements are now directly impacting Tesla's financial health and future prospects.

"Tesla's shares plummeted following a public feud between Elon Musk and Donald Trump, triggered by Musk's criticism of Trump's tax bill," a report noted, emphasizing the severity of the fallout.

The ongoing tensions underscore the risks of Musk's intertwined business and political relationships, which could jeopardize government contracts critical to Tesla and SpaceX's operations.

As Tesla navigates this turbulent period, investors remain cautious amid the potential for further losses and regulatory challenges tied to Musk's broader political controversies.

Tesla's shares have plunged amid Elon Musk's public feud with Donald Trump over tax policies, threatening government contracts for Tesla, SpaceX, and Starlink. The spat deepens Tesla's 2025 crisis, with the company losing over $380 billion in market value and facing potential $1.2 billion profit losses.