Market Voices: Trump threatens to pull Musk’s contracts, subsidies

Seeking Alpha’s daily roundup of statements and remarks by newsmakers that could impact markets, sectors or individual stocks.

-President Trump told ABC News on Friday morning that he wasn’t interested in speaking with Elon Musk following a wild online argument between the two on Thursday evening, adding that Musk had “lost his mind.”

During the course of the argument, which sparked by Musk’s persistent criticism of the Trump-backed budget bill before Congress, Trump threatened to pull contracts and subsidies benefitting Tesla (NASDAQ:TSLA) and SpaceX (SPACE).

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!’ Trump posted on Truth Social on Thursday night.

-In response to the threatened cuts, Musk declared on X that he would decommission SpaceX’s Dragon spacecraft, which is used by NASA to ferry astronauts and supplies to the International Space Station. Musk walked back on the threat a few hours later.

-Later Thursday, Musk also appeared a bit open to healing his rift with Trump in response to a post by Pershing Square’s (OTCPK:PSHZF) Bill Ackman.

“I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country. We are much stronger together than apart,” Ackman posted, to which Musk replied, “You’re not wrong.”

-Trump also continued to press Federal Reserve Chairman Jerome Powell for a substantial interest rate cut.

“‘Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!,” Trump posted on Truth Social, referring to Powell.

“If ‘Too Late’ at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. There is virtually no inflation (anymore), but if it should come back, RAISE “RATE” TO COUNTER. Very Simple!!! He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!” Trump added in a second post.