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Cnn
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Elon Musk’s decision to go on Donald Trump never made much sense. His approach to the burned earth to break with Trump is even more difficult in Carré.
As a close ally of Trump, Musk’s actions have inevitably affected Tesla – the largest element of his commercial empire and the manufacturer of one of the most visible and most expensive items that Americans can buy: electric vehicles.
First of all, Musk disabled Tesla’s main customers, Democrats on the coasts, by pay money and use your influence to help Trump returns to the White House. Then him took a chainsaw in the federal workforce.
Trump confirmed that their relationship had embitteredWith Musk, who repeatedly exploded the bill of the President of the Internal President in recent days and a public fight on social networks on Thursday. Now, Musk’s War of Words with the president may deactivate the same Trump voters who may have planned to buy a Tesla until this week.
Not only that, but Tesla’s ambitions for autonomous vehicles require government approval, which is no longer like something safe in the middle of the musque-trump quarrel. Other musk companies such as SpaceX are built on government contracts – Contracts that Trump wasted no time threatening on Thursday.
The last 12 months – with Musk marrying the Polarising Trump brand then break with him – look like a manual example of what a CEO should not do, in particular a CEO intended for consumers.
“It is a bit of a shoemaker that Musk becomes so negative Voyou towards Trump so quickly. It is a potentially very dangerous path,” said Dan Ives, a research analyst in senior actions at Wedbush Securities and a longtime Tesla Bull, in CNN during a telephone interview on Thursday.
The rupture of Musk-Trump, playing on the respective social media platforms of the billionaires, was nevertheless entirely predictable and shocking.
After Musk castigated Trump’s political bill As a “disgusting abomination” earlier this week, Trump suggested that Musk has “Trump’s disturbance syndrome.” Musk answered Trump’s political prowess, saying: “Without me, Trump would have lost the elections.”
While two of the most powerful people in the world continued to exchange public beards, Tesla’s actions have dropped more and more.
Tesla Shares (Tsla) fell 14% on Thursday while bromance between Trump and Musk imploded in front of the world. The sale has erased about $ 152 billion from Tesla’s market value and $ 34 billion on Musk’s net value, according to the Bloomberg billionaires index.
Tesla’s actions rebounded Friday morning but only modestly.
Asset said that Dana Bash de CNN Friday that he “does not even think of Elon” and will not speak to him in the near future.
“He has a problem. Poor guy has a problem,” said Trump.
Tesla shareholders are dismayed on several levels.
First, Musk would face the president, so publicly could reduce the customers of the car manufacturer more by annoying Trump donors.
“You could end up alienating both sides of the aisle in just a few months. When you are a consumer -oriented company, this is the opposite of what you want to do,” said Ives.
By painting through daily monitoring data, the researchers found in recent work paper The fact that Trump’s Musk approval and the role in the administration “politicized Tesla, polarized the image and the reputation of the brand of the car manufacturer of the electric vehicle, and probably led to a partisan consumerism”.
“Business leaders engage in partisan policy at the risk of their brand images and, in the end, even the results,” wrote professors from the University of Northern Iowa, the University of Columbia and the Northeast University in the newspaper.
Secondly, Tesla relies on the federal government for tax credits and for the approval of its controversial full driving technology, a green light that investors hoped after the elections. NeuralMusk’s cerebral chip startup also depends on the approval of the FDA.
The Trump Administration will help establish the regulatory landscape of autonomous vehicles, not to mention artificial intelligence and other musk priorities. And the president did not hesitate Flee the power of the federal government to injure its opponents.
“You want Trump to be nice in the sandbox. You don’t want Trump on your side,” said Ives.
Bill George, a member of the Harvard Business School management and former CEO of the Société de Techno Santé Medtronic, described the recent quarrel as a “brutal breakdown”.
“Never go to war with the President of the United States,” he said. “There will be a lot of collateral damage to your business.”
Trump threatened on Thursday to go after the Musk business empire.
“The simplest way to save money in our budget, billions and billions of dollars, is to terminate the subsidies and government contracts of Elon”, Trump poster On his social media platform, social social. “I have always been surprised that Biden does not do it!”
SpaceX, the private space company of Musk, is based strongly on federal contracts, in particular NASA. SpaceX Starlink satellite internet Business recently won Federal Aviation Administration to help the agency upgrade the networks used to manage American airspace.
Jeffrey Sonnenfeld, founder of the Yale, director general of Leadership Institute, said that the lesson did not concern CEOs occupying political posts.
“The lesson here is that there is no honor among the thieves. These are two bosses of the mafia who have had a separation. And now they are going to slaughter,” Sonnenfeld told CNN.
George de la Harvard Business School noted that Musk and Trump acted as “best brothers” a few days earlier.
“The lesson here is that you can either work in the government or manage your business,” said George. “But you can’t do both.”