Elon Musk, the CEO of Tesla and SpaceX, warned on Friday that Donald Trump’s newly introduced trade tariffs could push the U.S. economy into a recession during the latter half of this year.
His comments come amid a growing rift with President Trump, as tensions between the tech billionaire and the head of state continue to intensify in the public eye.
"The Trump tariffs will lead to a recession in the second half of this year," Musk posted on X, the site he now owns. "If America runs out of money, nothing else really matters," he went on, emphasizing the gravity of his message.
The reverberations of this public spat shook financial markets, helping send Tesla's share price plummeting more than 14% on Thursday (US time), erasing close to $150 billion of market value.
In a sarcastic remark, Trump stated that the government would be able to save a lot of money by ending federal contracts and subsidies related to Musk, who was once an adviser to the administration.
Reacting to this, Musk tweeted, "In light of the President's statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately."
The split came after Musk accused Trump of being "ingratitude" in spite of his significant financial contributions. Musk accused the President of not having won election victory without his support, which saw him make more than $250 million in donations.
Oh and some food for thought as they consider Mars colony duration: Trump has 3.5 years left as President, but I'll be around for 40+ years," Musk posted on X, with a link obliquely referencing his extended influence.
Their dramatic falling out is a reversal of how it initially started—quickly, enthusiastically, and with public scrutiny.
Trump, frustrated, stated he was "very disappointed" with Musk after the billionaire tech entrepreneur harshly criticized his signature economic policies, such as tax cuts and huge federal spending.
Musk, in typical frank manner, merely replied with a straightforward "Whatever" on social media, responding to Trump's remarks in real time.
He seemed to shut the book on this one last week in a subdued press briefing at the White House, where he bid farewell to Trump. Musk was also wearing a black eye, which he explained as a playful blow from his young son—though many saw it as a symbol of his rocky ride in the political sphere.
