Elon Musk’s feud with President Donald Trump isn’t just petty drama, it could have real consequences for Musk’s companies because they rely so much on the government, said ARK Invest CEO and investor Cathie Wood.
Among Musk’s companies, both SpaceX and Tesla have benefited from billions of dollars in subsidies and grants, and SpaceX president and COO Gwynne Shotwell said last year the company had $22 billion in federal contracts, the bulk of which came from NASA.
This reliance on the government could become a problem not just for Musk’s companies, but for investors amid his spat with Trump, said Wood in a video uploaded to ARK Invest’s YouTube channel Friday.
“I think the way this is evolving is Elon, Tesla, and investors are beginning to understand more and more just how much the government has control here,” Wood said in the video. “Elon is involved in companies that are depending on the government.”
For Neuralink, a more hostile regulatory environment could also be a problem. While Musk’s brain-implant company has already received FDA approval for human trials, any future commercialization would also require federal approval. Meanwhile, Tesla could later need to deal with federal regulations for its autonomous-taxi plan, added Wood. Any regulation on AI imposed by the executive branch could also affect xAI, Musk’s AI company, which also owns X, his social network.
