Core Viewpoint - The relationship between Elon Musk and Donald Trump has deteriorated from initial collaboration to significant conflict, primarily due to Trump's "Big and Beautiful" legislation, which poses substantial risks to Musk's businesses, particularly Tesla and SpaceX [1][7][14]. Group 1: Financial Impact on Companies - Tesla is projected to lose approximately $1.2 billion annually due to the cancellation of electric vehicle subsidies, which may lead to a significant decline in sales [1]. - NASA's collaboration with Musk's SpaceX faces uncertainty regarding future funding, potentially resulting in the postponement of certain space projects [1][7]. Group 2: Political Dynamics - Musk initially supported Trump's campaign with nearly $300 million in contributions, positioning himself as a key financial backer [3]. - Following Trump's election, Musk was appointed to lead the "Department of Government Efficiency," aiming to reduce federal spending and improve administrative efficiency [5]. - The relationship soured as policy disagreements emerged, particularly regarding Trump's tax and spending legislation, which Musk criticized for increasing federal debt and harming his businesses [7][10]. Group 3: Escalation of Conflict - The conflict escalated into a public exchange of accusations, with Trump suggesting Musk's companies rely heavily on subsidies, while Musk called for the elimination of all subsidies and criticized supporting lawmakers [9][10]. - Musk's firm stance against Trump's fiscal policies reflects a significant ideological divide, leading to a complete breakdown of their previously close relationship [10]. Group 4: New Political Ventures - In response to the conflict, Musk has proposed the creation of a new political party, the "American Party," which aims to represent centrist views and has garnered support from his social media followers [12][14]. - The establishment of the "American Party" and Musk's potential candidacy could disrupt the existing political landscape in the U.S., challenging the traditional two-party system [14].

Group 1 - Elon Musk criticizes the massive tax spending bill pushed by Trump, labeling it as the "DEBT SLAVERY bill" and threatening to target fiscal conservatives who support it in the upcoming primaries [1][2] - Musk's comments come as the Senate votes on numerous amendments to the bill, which could be passed without Democratic support through budget reconciliation [1][3] - The bill proposes to raise the debt ceiling by a record $5 trillion and eliminate federal subsidies for wind and solar projects, which directly impacts Tesla's energy business [2][3] Group 2 - Musk's influence may be more significant in the House of Representatives due to the shorter election cycle compared to the Senate, potentially altering the primary landscape with substantial campaign funding [2] - Concerns arise among Republicans about Musk's fluctuating relationship with Trump and its potential impact on their chances in the 2026 midterm elections [3]

Market Trends & Political Influence - The dispute between Trump and Musk initially caused Tesla's stock to drop by 1426% to $28470 on June 5th, but Robinhood's after-hours trading showed an 82% increase to approximately $30807, reflecting market optimism about a potential reconciliation [1] - Musk's stance is seen as challenging the excessive spending and lack of accountability in the US two-party system, with over 80% of more than 4 million voters on X supporting the idea of a new party representing the "middle 80%" [1] - If Musk creates a new political party, it could potentially split the Republican vote and complicate the political landscape [1] Tesla Production & Operations - Tesla China launched a referral program from June 5th to June 30th, 2025, offering a waiver of RMB 8000 for car body colors to buyers recommended by Tesla owners, while the referrer receives RMB 800 in Tesla credits [1] - Tesla announced plans to install a 6-megawatt rooftop solar array and an 8-megawatt-hour Megapack energy storage system at its Shanghai Megafactory, expected to be completed by the end of 2025 [2] - Tesla's Shanghai Megafactory has an annual production capacity of 10000 Megapacks, with a total energy storage capacity of 40 GWh [2] US Market Initiatives - Tesla is offering discounts on new Model Y demo vehicles in the US, with mileage between 500 and 2000 miles, and discounts ranging from $500 to $1200 depending on mileage, including Launch Series Model Y demo vehicles [2] - Tesla is providing a special financing offer of 199% interest rate for new orders of Model Y Long Range AWD, valid until June 16th, 2025, with a 15% down payment [2]