There’s trouble in paradise between President Donald Trump and his former senior advisor Elon Musk. The two seemed quite close at the beginning of Trump’s term, with Musk heading up the Department of Government Efficiency (DOGE) for a time. However, since Trump introduced plans for his “Big Beautiful Bill,” the Tesla CEO has repeatedly expressed his concerns over the tax implications in the bill, as well as domestic policy measures. Musk has even gone so far as to suggest creating his own political party, “The America Party,” in opposition.
Be Aware: Trump Isn’t Ruling Out a Recession This Year — What Could That Mean for Your Wallet?
Find Out: The New Retirement Problem Boomers Are Facing
The richest man in the world feuding with the president could have ramifications on the economy. In a recent episode of the “RiskReversal” podcast, money experts Dan Nathan and Guy Adami recently talked about what these opposing views could mean for markets and investors. Read on to find out what the Trump-Musk feud could mean for your money.
Possibilities Are Worse Than Realities — So Far
In the episode, Adami expressed that when he saw tensions rise between Trump and Musk, he expected the worst. “I thought you would see continued dollar weakness. I thought the equity market would suffer a little bit, and I thought the bond market potentially could sell off,” he said.
As of the podcast’s release, Adami said that, fortunately for investors, it hadn’t been the case so far. However, since then, June’s consumer price index report was released, which led to Treasurys selling off in mid-July. This sell-off, while unrelated to the feud, caused the 30-year bond’s yield to rise, which could mean bad news for stocks, per MarketWatch.
Check Out: Mark Cuban Warns of ‘Red Rural Recession’ — 4 States That Could Get Hit Hard
Tesla’s Stock Price Could Continue To Decline
Adami pointed out the disagreements between Musk and Trump could affect Tesla’s stock price.
Since Musk’s tenure with DOGE ended in early June, right around when the pair started feuding, Tesla’s stock has seen some drops. For example, it dropped by 14% on June 5 after Trump threatened to eliminate government contracts for Musk’s companies, according to CNBC.
Then, Musk again publicly criticized Trump and his “Big Beautiful Bill” on X. By July 1, Trump had responded, threatening to look into government spending going to Musk’s companies. That fight saw Tesla’s stock drop by 6% in morning trading on July 1, per CBS News.
Inner Turmoil Could Make the US Weak to Other Countries
When reaching trade deals with countries like Canada, Mexico and China are paramount right now, a public feud between Trump and one of his former employees could make countries believe the United States is vulnerable. This could lead to countries refusing to make deals with the U.S. Nathan pointed out this could have huge consequences for the American economy.
“You have a situation where the Chinese are just sitting back and saying ‘Let’s let them eat themselves from within’ … I just don’t think there’s going to be a trade deal, and at a certain point, that will weigh on U.S. corporate earnings. It’s going to weigh on employment here, and then you have to ask yourself where the economy is going to be in the second half of this year,” he said.
If corporate earnings are impacted, investors and their holdings could be affected as well. Ultimately, though, it remains to be seen what will occur as a result of this feud, so investors should stay informed and be aware of any possible impacts.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- 4 Things You Should Do if You Want To Retire Early
- The 5 Car Brands Named the Least Reliable of 2025
- 4 Affordable Car Brands You Won't Regret Buying in 2025
This article originally appeared on GOBankingRates.com: Money Experts Dan Nathan and Guy Adami on What the Musk-Trump Feud Could Mean for Investors
