Wood Cathie: Musk-Trump Feud shows how many musk needs government support

THE public quarrel Between Elon Musk and President Donald Trump showed investors how the US government has on Musk companies, said Cathe Wood, CEO of Ark Invest.

“I think the way it evolves is Elon, Tesla, and investors are starting to understand more and more how the government is controlling here,” Wood said in a video published on the company’s YouTube channel on Friday.

Many musk companies have key links with the government and have received billions of dollars In federal loans, contracts, tax credits and subsidies over the years.

“Elon is involved in companies that depend on the government,” said Wood, pointing to Tesla, Spacex and Neuralink examples.

SpaceX COO, Gwynne Shotwell, said last year that the company had $ 22 billion in federal contracts. Neuralink, Musk’s Brain Chip Company, is subject to the regulation of the FDA, and a less user -friendly regulatory environment could have an impact on the deployment plans of Robotaxi de Tesla. Tesla’s stock fell by more than 14% on Thursday after Musk and Trump locked themselves up in a series of increasingly bitter clashes.

The quarrel seemed to begin, at least publicly on Tuesday after Musk criticized “One Big Beautiful Bill” by Trump. He called this a “disgusting abomination” and said that this would increase the national budget deficit.

Tensions quickly increased between the allies in the past farms on Thursday. Trump threatened to cut contracts from Musk’s government and that Musk said SpaceX would immediately start the district of his dragon spacecraft – who returned the NASA blocked astronauts, Suni Williams and Butch Wilmore from the International Space Station in March.

Musk then retracted this threat, which, according to Wood, was a sign that he “began to walk”.

Wood said the Rift with Trump could, in part, be Musk’s attempt to decline more from the Trump administration. Musk announced in April that he would go back from his government work.

“One of the hypotheses is that what happened was partly – not entirely – orchestrated,” said Wood. “Obviously, there have been brand damage to Tesla, which he admits easily, and I think he is trying to disengage from the government and be associated with one party or the other.”

To move forward, Wood said that neither Trump nor Musk needed to have “mired” with a fight and that she believed that the two would end up taking this reasoning into account.

She also seemed confident that Musk could make the situation work for him. She said that Musk “works very well under pressure” and that he “creates a lot of this chaos and hurry”.

Trump, however, said on Saturday that he had No desire to repair your relationship With the CEO of SpaceX anytime soon.

“I have no intention of talking to him,” Trump told NBC News.

“I think it is a very bad thing because it is very disrespectful. You could not lack respect for the president’s office,” he added.

Vice-president JD Vance hit a slightly more friendly tone Asked about the possibility of reconciliation during an interview Thursday with Podcaster Theo von.

Vance said that even if he thought it was a “huge error” for Musk to “go after the president”, he hoped that Musk “Figure” and “returns in the fold”.