Agence France-Presse reported on June 6 that an article titled "The Break with Trump Casts a Shadow over Musk's Companies" was published on June 6. The following is an excerpt:

The public rift between Musk and Trump poses a threat to all of Musk's companies through government contracts, regulatory frameworks, and tax policies.

Tesla and Tax Incentives

Tesla has been unable to stop the downward trend in its sales. In May this year, Tesla's car sales in France fell by 67% year-on-year, and they also dropped by 36% in the UK and Germany.

Struggling Tesla may find it hard to bear the impact of Trump's proposed budget bill. The bill plans to eliminate tax incentives (up to $7,500) for purchasing electric vehicles starting at the end of 2025.

In addition, on April 4, Trump signed an executive order aimed at abolishing California's current automobile manufacturer emission regulations. Through this mechanism, Tesla offsets emissions by selling carbon credits to other auto brands each year.

According to a report released by J.P. Morgan on May 5, if this market mechanism adopted by more than a dozen US states is abolished, Tesla will lose $2 billion in annual revenue.

Musk also pinned his hopes on his autonomous taxi business. Although the launch of this business does not require approval from the National Highway Traffic Safety Administration, it falls under the Department of Transportation, so the agency led by Trump can initiate investigations and, if necessary, request vehicle recalls.

SpaceX and Government Contracts

The US federal government and its agencies as well as local governments have injected more than $22 billion into SpaceX through contracts, subsidies, loans, or tax incentives. Current agreements ensure that the company will have billions of dollars in revenue in the coming years.

However, as Trump's actions against Harvard University and threats against Apple and Walmart show, Trump will not hesitate to use all means of government power to target institutions and businesses. Moreover, SpaceX's subsidiary, Starlink, is currently negotiating new contracts with several US government agencies.

Another angle of attack is NASA. Last September, due to anomalies in the launch of the Falcon 9 rocket, NASA suspended SpaceX's flight missions.

xAI and AI Diplomacy

Musk founded the startup xAI in July 2023 to enter the artificial intelligence field, although later than major competitors, it is investing heavily to become a key player in the field.

Reportedly, in May this year, Musk attempted to force the UAE to include xAI in a large-scale infrastructure project led by OpenAI, a competitor, but failed. It was reported that Musk hinted to executives of G42, a state-owned technology enterprise of the UAE, that Trump would only approve the agreement under these conditions.

The rift with Trump may cause xAI to miss opportunities gained by OpenAI or Nvidia from Trump's AI diplomacy efforts. (Translated by Wang Zhongju)

Original article: https://www.toutiao.com/article/7513487962613596681/

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