Elon Musk’s feud with Donald Trump muddies xAI debt raising for Morgan Stanley
- On June 7, 2025, a public dispute unfolded online between Elon Musk and President Donald Trump amid Musk’s efforts to secure funding for the recently combined X and xAI companies.
- The dispute arose after Musk criticized the GOP spending bill for reducing electric vehicle tax incentives and increasing the national debt by more than $2.4 trillion.
- Morgan Stanley gathered xAI executives this week to pitch investors as Musk sought to raise $5 billion in debt and $300 million in a secondary sale.
- The debt traded below par at times, around 95 cents on the dollar, while Tesla’s stock dropped 14%, wiping out $138 billion in market value on June 5.
- The feud creates funding uncertainties for the combined company, but Tesla’s robotaxi launch in Austin later this month remains a significant upcoming milestone.
12 Articles
12 Articles
Trump and Elon Musk's Feud on Full Display as They Trade Insults
After months of appearing inseparable, President Donald Trump and Elon Musk’s relationship is imploding into a messy public spectacle with the two men trading attacks online over a variety of topics, including Trump’s budget bill, Musk’s White House departure and electric cars. In one post, Trump wrote, “Elon was ‘wearing thin,’ I asked him to leave… and he just went CRAZY,” with Musk responding with, “Such an obvious lie. So sad.” NBC’s Kelly O…
Will Musk vs. Trump affect xAI’s $5 billion debt deal?
While the online feud between Elon Musk and President Donald Trump seemed to drive traffic to Musk’s social media platform X (formerly Twitter), it could also create issues for the platform’s parent company xAI. Musk merged X and xAI earlier this year, with Bloomberg reporting this week that he was looking to raise $5 billion […]
When Access Breeds Arrogance: Elon Musk’s Betrayal of Donald Trump
In politics and business, access is power. It opens doors, builds alliances, and can forge lasting partnerships. But what happens when access leads not to loyalty, but to arrogance? The recent fallout between Elon Musk and Donald Trump provides a cau...
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