NEW YORK: The world’s richest man could lose billions in his fight with world’s most powerful politician.
The feud between Elon Musk and Donald Trump could mean Tesla’s plans for self-driving cars hit a roadblock, SpaceX flies fewer missions for NASA, Starlink gets fewer overseas satellite contracts and the social media platform X loses advertisers.
Maybe, that is. It all depends on Trump’s appetite for revenge and how the dispute unfolds.
Joked Telemetry Insight auto analyst Sam Abuelsamid, “Since Trump has no history of retaliating against perceived adversaries, he’ll probably just let this pass.”
Turning serious, he sees trouble ahead for Musk.
“For someone that rants so much about government pork, all of Elon’s businesses are extremely dependent on government largesse, which makes him vulnerable.”
Trump and the federal government also stand to lose from a long-running dispute, but not as much as Musk.
Tesla robotaxis
The dispute comes just a week before a planned test of Tesla’s driverless taxis in Austin, Texas, a major event for the company because sales of its EVs are lagging in many markets, and Musk needs a win.
Trump can mess things up for Tesla by encouraging federal safety regulators to step in at any sign of trouble for the robotaxis.
Even before the war of words broke out on Thursday, the National Highway Transportation Safety Administration requested data on how Musk’s driverless, autonomous taxis will perform in low-visibility conditions. That request follows an investigation last year into 2.4 million Teslas equipped with full self-driving software after several accidents, including one that killed a pedestrian.
A spokesman for NHTSA said the probe was ongoing and that the agency “will take any necessary actions to protect road safety.”
The Department of Justice has also probed the safety of Tesla cars, but the status of that investigation is unclear. The DOJ did not respond immediately to requests for comment.
The promise of a self-driving future led by Tesla inspired shareholders to boost the stock by 50 percent in the weeks after Musk confirmed the Austin rollout. But on Thursday, the stock plunged more than 14 percent amid the Trump-Musk standoff. On Friday, it recovered a bit, bouncing back nearly 4 percent.
“Tesla’s recent rise was almost entirely driven by robotaxi enthusiasm,” said Morningstar analyst Seth Goldstein. “Elon’s feud with Trump could be a negative.”
Carbon credits business
One often-overlooked but important part of Tesla’s business that could take a hit is its sales of carbon credits.
As Musk and Trump were slugging it out Thursday, Republican senators inserted new language into Trump’s budget bill 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.
Musk has downplayed the importance of the credits business, but the changes would hurt Tesla as it reels from boycotts of its cars tied to Musk’s time working for Trump.
Credit sales jumped by a third to $595 million in the first three months of the year even as total revenue slumped.
Reviving sales
Musk’s foray into right-wing politics cost Tesla sales among the environmentally minded consumers who embraced electric cars and led to boycotts of Tesla showrooms.
If Musk has indeed ended his close association with Trump, those buyers could come back, but that’s far from certain.
Meanwhile, one analyst speculated earlier this year that Trump voters in so-called red counties could buy Teslas “in a meaningful way.” But he’s now less hopeful.
“There are more questions than answers following Thursday developments,” TD Cowen’s Itay Michaeli wrote in his latest report, “and it’s still too early to determine any lasting impacts.”
Michaeli’s stock target for Tesla earlier this year was $388. He has since lowered it to $330. Tesla was trading Friday at $300.
Tesla did not respond to requests for comment.
Moonshot mess
Trump said Thursday that he could cut government contracts to Musk’s rocket company, SpaceX, a massive threat to a company that has received billions of federal dollars.
The privately held company that is reportedly worth $350 billion provides launches, sends astronauts into space for NASA and has a contract to send a team from the space agency to the moon next year.
But if Musk has a lot to lose, so does the US
SpaceX is the only US company capable of transporting crews to and from the space station, using its four-person Dragon capsules. The other alternative is politically dicey: depending wholly on Russia’s Soyuz capsules.
Musk knew all this when he shot back at Trump that SpaceX would begin decommissioning its Dragon spacecraft. But it is unclear how serious his threat was. Several hours later — in a reply to another X user — he said he wouldn’t do it.
Starlink impact?
A subsidiary of SpaceX, the satellite Internet company Starlink, appears to also have benefited from Musk’s once-close relationship with the president.
Musk announced that Saudi Arabia had approved Starlink for some services during a trip with Trump in the Middle East last month. The company has also won a string of other recent deals in Bangladesh, Pakistan, India and elsewhere as Trump has threatened tariffs.
It’s not clear how much politics played a role, and how much is pure business.
On Friday, The Associated Press confirmed that India had approved a key license to Starlink. At least 40 percent of India’s more than 1.4 billion people have no access to the Internet.
Ad revival interrupted?
Big advertisers that fled X after Musk welcomed all manner of conspiracy theories to the social media platform have started to trickle back in recent months, possibly out of fear of a conservative backlash.
Musk has called their decision to leave an “illegal boycott” and sued them, and the Trump administration recently weighed in with a Federal Trade Commission probe into possible coordination among them.
Now advertisers may have to worry about a different danger.
If Trump sours on X, “there’s a risk that it could again become politically radioactive for major brands,” said Sarah Kreps, a political scientist at Cornell University. She added, though, that an “exodus isn’t obvious, and it would depend heavily on how the conflict escalates, how long it lasts and how it ends.”
Musk could lose billions of dollars depending on how spat with Trump unfolds
https://arab.news/45g2z
Musk could lose billions of dollars depending on how spat with Trump unfolds
- “For someone that rants so much about government pork, all of Elon’s businesses are extremely dependent on government largesse, which makes him vulnerable”
How decades of deforestation led to catastrophic Sumatra floods
- At least 1.4m hectares of forest in flood-affected provinces were lost to deforestation since 2016
- Indonesian officials vow to review permits, investigate companies suspected of worsening the disasters
JAKARTA: About a week after floods and landslides devastated three provinces in Indonesia’s Sumatra island, Rubama witnessed firsthand how the deluge left not only debris and rubble but also log after log of timber.
They were the first thing that she saw when she arrived in the Beutong Ateuh Banggalang district of Aceh, where at least two villages were wiped out by floodwaters.
“We saw these neatly cut logs moving down the river. Some were uprooted from the ground, but there are logs cut into specific sizes. This shows that the disaster in Aceh, in Sumatra, it’s all linked to illegal forestry practices,” Rubama, empowerment manager at Aceh-based environmental organization HAKA, told Arab News.
Monsoon rains exacerbated by a rare tropical storm caused flash floods and triggered landslides across Aceh, North Sumatra, and West Sumatra in late November, killing 969 people and injuring more than 5,000 as of Wednesday, as search efforts continue for 252 others who remain missing.
In the worst-hit areas, residents were cut off from power and communication for days, as floodwater destroyed bridges and torrents of mud from landslides blocked roads, hampering rescue efforts and aid delivery to isolated villages.
When access to the affected regions gradually improved and the scale of the disaster became clearer, clips of washed-up trunks and piles of timber crashing into residential areas circulated widely online, showing how the catastrophic nature of the storm was compounded by deforestation.
“This is real, we’re seeing the evidence today of what happens when a disaster strikes, how deforestation plays a major role in the aftermath,” Rubama said.
For decades, vast sections of Sumatra’s natural forest have been razed and converted for mining, palm oil plantations and pulpwood farms.
Around 1.4 million hectares of forest in Aceh, North Sumatra and West Sumatra were lost to deforestation between 2016 and 2025 alone, according to Indonesian environmental group WALHI, citing operations by 631 permit-holding companies.
Deforestation in Sumatra stripped away natural defenses that once absorbed rainfall and stabilized soil, making the island more vulnerable to extreme weather, said Riandra Purba, executive director of WALHI’s chapter in North Sumatra.
Purba said the Sumatra floods should serve as a “serious warning” for the government to issue permits more carefully.
“Balancing natural resource management requires a sustainable approach. We must not sacrifice natural benefits for the financial benefit of a select few,” he told Arab News.
“(The government) must evaluate all the environmental policies in the region … (and) implement strict monitoring, including law enforcement that will create a deterrent effect to those who violate existing laws.”
In Batang Toru, one of the worst-hit areas in North Sumatra where seven companies operate, hundreds of hectares had been cleared for gold mining and energy projects, leaving slopes exposed and riverbeds choked with sediment.
When torrential rains hit last month, rivers in the area were swollen with runoff and timber, while villages were buried or swept away.
As public outrage grew in the wake of the Sumatra floods, Indonesian officials, including Environment Minister Hanif Faisol Nurofiq, have moved to review existing permits and investigate companies suspected of worsening the disaster.
“Our focus is to ensure whether company activities are influencing land stability and (increasing) risks of landslides or floods,” Nurofiq told Indonesian magazine Tempo on Saturday.
Sumatra’s natural forest cover stood at about 11.6 million hectares as of 2023, or about 24 percent of the island’s total area, falling short of the 30 to 33 percent forest coverage needed to maintain ecological balance.
The deadly floods and landslides in Sumatra also highlighted the urgency of disaster mitigation in Indonesia, especially amid the global climate crisis, said Kiki Taufik, forest campaigner at Greenpeace Indonesia.
Over two weeks since floods and landslides inundated communities in Sumatra, a few villages remain isolated and over 800,000 people are still displaced.
“This tropical cyclone, Senyar, in theory, experts said that it has a very low probability of forming near the equator, but what we have seen is that it happened, and this is caused by rapid global warming … which is triggering hydrometeorological disasters,” Taufik told Arab News.
“The government needs to give more attention, and even more budget allocation, to mitigate disaster risks … Prevention is much more important than (disaster) management, so this must be a priority for the government.”
