The Trump-Musk Fight: Why Startups Should Care

What happened: Donald Trump and Elon Musk went from allies to enemies in a very public battle that's shaking up tech and politics.

Author

Manoj Ahirwar
June 06, 2025

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The Breakdown

Trump and Musk used to be on the same team. They both wanted to fight "woke culture" and make America stronger. But that friendship just exploded.

The fight started when Musk criticized Trump's tariff plan. Musk said Trump's "Big, Beautiful Bill" would hurt the economy and might cause a recession by late 2025.

Trump hit back hard. He threatened to cancel government contracts with Musk's companies—Tesla, SpaceX, and Starlink. Trump said this would save the government "billions and billions" of dollars.

The market panicked. Tesla's stock dropped over 14% in one day, erasing nearly $150 billion in value.

Why This Matters for Startups

Government money is crucial. SpaceX gets huge contracts from NASA. Starlink has major government deals. Tesla gets subsidies and needs government approval for self-driving cars. If Trump follows through on his threats, it could slow down innovation in space tech and electric vehicles.

Political risk is real. Musk went from insider to outsider overnight. This shows how fast political relationships can change. Many startups depend on government support, contracts, or friendly regulations. What happens when those relationships sour?

The ripple effect is big. When two powerful people fight this publicly, it hurts confidence across the entire tech sector. Investors get nervous. Other companies wonder if they're next.

What Startups Should Learn

Don't put all your eggs in one political basket. Musk bet big on his relationship with Trump, and now he's paying the price. Smart startups spread their risk across different politicians and parties.

Personal drama can kill business deals. This isn't just about policy—it's about ego and hurt feelings. In today's world, a tweet can cost billions.

Political capital is fragile. What looks like a solid partnership today can become a nightmare tomorrow.

The Bottom Line

This isn't just celebrity gossip. The Trump-Musk fight shows how politics and business are more connected than ever. Startups that ignore this do so at their own risk.

The lesson? Build great products, but also build relationships that can survive political storms. Because in today's world, your startup's success might depend as much on staying out of political drama as it does on your next big idea.

Until next time
Cheers!