Elon Musk has expressed regret over recent social media posts concerning US President Donald Trump.

His statement came amid a public disagreement that has raised questions about his business interests in Tesla and SpaceX.

“I regret some of my posts about President @realDonaldTrump last week. They went too far,” Musk wrote on his platform, X, on June 11, 2025.

The dispute began with Musk’s criticism of the Trump-backed “One Big Beautiful Bill Act.” He claimed it would increase the US budget deficit, a contention the Trump administration has denied.

The conflict led Musk to delete several posts, including one where he linked Trump to Jeffrey Epstein.

Another deleted post showed Musk agreeing with calls for Trump’s impeachment and suggested Vice President JD Vance as a replacement.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ The “Musk effect”: Documented impact of CEO tweets on Tesla’s stock

Musk’s apologetic tweets are the latest example of how his social media behavior directly influences Tesla’s market performance.

Multiple studies confirm a correlation between Musk’s social media activity and Tesla’s stock price fluctuations, with negative sentiment typically driving prices down1.

The recent feud with Trump triggered Tesla’s “biggest ever hit to its market cap,” continuing a pattern seen since 2018 when Musk’s controversial “going private” tweet caused an immediate 6% stock price increase followed by market volatility2.

Research using sentiment analysis and machine learning demonstrates that days with higher tweet frequency from Musk correlate with slight decreases in Tesla’s stock price, highlighting the real-time market response to his communications3.

This pattern of CEO-driven stock volatility creates unique challenges for Tesla investors who must factor in Musk’s unpredictable communications when evaluating the company’s value proposition.

2️⃣ The US$48 billion question: Financial interdependence between Musk’s companies and government

The Trump-Musk feud exposed the massive financial stakes in their relationship, with an estimated $48 billion in government contracts potentially at risk4.

SpaceX alone is projected to collect about US$34 billion from NASA and military contracts in coming years, with the company having received nearly US$18 billion in federal contracts over the past decade45.

Despite the heated rhetoric, analysts note the practical impossibility of quickly severing these relationships due to national security implications and the lack of immediate alternatives for critical functions like transporting astronauts to the International Space Station6.

The market responded immediately to these threats with Tesla’s stock dropping 14% amid the escalating conflict, reflecting investor concerns about potential impacts on both SpaceX contracts and Tesla’s electric vehicle subsidies7.

This interdependence creates a power dynamic where both sides have significant leverage – the government relies on Musk’s companies for critical operations, while those same companies have benefited from at least $38 billion in government support over two decades4.

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