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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.
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MSNBC broke the news in United States on Friday, June 6, 2025.
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