In Trump-Musk Clash, buy RKLB, GSAT & AMZN !
The proverb "If a fish knows when to keep its mouth shut, it will not be caught" aptly frames the public clashes between Donald Trump and Elon Musk, where outspoken remarks led to costly consequences.
The Clash.
The first clash erupted on 03 Jun 2025 after Musk publicly condemned Trump’s signature spending bill as a “disgusting abomination” and an example of “outrageous pork-filled” government waste.
He also shamed those who voted for it and accused Trump of hypocrisy by resurfacing his old statements on government debt.
Feeling “betrayed”, Trump responded by expressing “disappointment” in Musk, suggesting his criticism was motivated by the loss of electric vehicle subsidies and threatening to review government contracts with Musk’s companies.
Musk’s initial criticism focused on fiscal irresponsibility and excessive government spending in Trump’s legislative agenda, rather than a personal attack on Trump.
Soon, the feud escalated & evolved from legislative agenda to personal mudsling accusations when the 2 involved could not contain their egos.
The Consequence.
This public spate culminated in a sharp drop in $Tesla Motors(TSLA)$ stock price, erasing $12 billion from Musk’s net worth. (see below)
It was reported that on 9 Jun 2025, Musk made a private phone to Trump, after discussions with Vice President JD Vance and White House Chief of Staff, Susie Wiles about easing tensions between the two men.
On 11 Jun 2025, Musk posted his public apology on “X”, claiming “I regret some of my posts about President @realDonaldTrump last week. They went too far”.
By a stroke of miracle, it took Wall Street roughly 2 weeks to get over its fears before the stock stabilized and recovered, after Musk’s apology and tensions temporarily cooled.
Just when you think the coast is cleared, along came another eruption out of nowhere.
The Clash (Again !)
The second clash reignited on late 30 Jun 2025 to 01 Jul 2025.
Again, Musk lambasted Trump’s spending as “utterly insane and destructive” when the bill was under the Senate’s review & revision.
He proposed forming a new political party, challenging the 2 parties US political system and vowed to oppose Trump’s Congressional allies.
This time, Trump retaliated by suggesting to the DOGE team (what irony !) to investigate into Musk’s subsidies and publicly suggesting Musk should “go back to South Africa” if he lost government support.
This renewed spat again triggered volatility in Tesla’s share price, with investors wary of political risks to Musk’s businesses. (see above)
True Visionaire ?
Although Musk has often been hailed as a visionary, all the episodes encounters suggest that his (a) impulsive and (b) combative public statements can undermine his companies’ stability and erode investors’ confidence.
A true visionary may challenge the status quo, that is god given in a ‘democratic’ society.
However, repeatedly engagement in self-destructive feuds, especially when stakes are high, raises questions about judgment & discipline, qualities essential for sustained leadership and innovation.
Even state of the mind comes into call.
Silver Linings.
The fallout from the 2nd public spat between Trump & Musk is already creating ripples that could benefit competing firms like:
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$Rocket Lab USA, Inc.(RKLB)$, competing against SpaceX.
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$Globalstar(GSAT)$ & $EchoStar(SATS)$ - competing against Starlink.
Following renewed threats from Trump to cut off government subsidies and contracts for Musk’s companies, ‘early’ investors shifted attention to SpaceX’s rivals.
Shares of competing satellite and space companies like Rocket Lab, Globalstar, EchoStar and AST SpaceMobile Inc (ASTS) have risen, in the immediate aftermath of the feud. (see below)
(1) Rocket Lab.
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On 27 Jun 2025 - RKLB ended the day at $35.38.
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On 30 Jun 2025, it closed at $35.77.
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On 01 Jul 2025, it was $34.33 as market pulled back.
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On 02 Jul 2025, it rebounded to close the day at $35.68.
(2) Globalstar.
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On 27 Jun 2025 - GSAT ended the day at $23.54.
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On 30 Jun 2025, it closed at $23.55.
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On 01 Jul 2025, it was $23.14 as market pulled back.
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On 02 Jul 2025, it rebounded to close the day at $23.79.
(3) Echostar.
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On 27 Jun 2025 - SATS ended the day at $28.81.
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On 30 Jun 2025, it closed at $27.70.
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On 01 Jul 2025, it rose to $28.36 as market pulled back.
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On 02 Jul 2025, it rebounded to close the day at $29.49.
Post Public Spat.
(1) SpaceX.
In the aftermath of the first clash, White House has reportedly ordered reviews of SpaceX’s multibillion-dollar NASA and Department of Defense contracts. (see below)
This opens up the possibility that could lead government agencies and commercial clients to diversify away from SpaceX and Starlink, at least temporarily, to mitigate risk.
Again, while this creates an opening for competitors, SpaceX’s dominance, especially in crewed spaceflight and satellite launches are not in immediate threat because currently, alternatives are not available at the same scale or reliability.
There is no telling, a few years down the road.
Other Plan-Bs include:
Boeing (BA)$:
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Stepping back up to the game after its high-profile disasters with its Starliner spacecraft.
$Amazon.com(AMZN)$ founder’s Jeff Bezos:
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Blue Origin space venture has received some NASA funding to develop orbital transportation capabilities for sending cargo and crew to Earth orbit.
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Although that project is years away from fruition, will Blue Origin be asked to step up?
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So that by 2030s, Blue Origin and its partners in the Orbital Reef program could launch a commercial space station to replace the ISS?
(2) Starlink.
With the recent clash, how will FCC’s new chairman Brendan Carr decide on the outcome of Starlink’s re-applications for access to the (a) 1.6GHz and 2.4GHz bands and (b) 2GHz spectrum ?
To read about Starlink and FCC, click here ! for details. please Re-post so that more people will know ok. Thanks.
Is this the start of Starlink losing its “monopoly” control over space communication ?
Other Plan-Bs:
EchoStar, AST SpaceMobile and OneWeb are among commercial alternatives to Starlink.
However, could AMZN’s Project Kuiper be the emerging dark horse to fill the void carved out by White House to reduce Starlink’s role in military involvement?
AMZN is expected to be more of a heavyweight when it comes to supporting military communications and other US government applications.
Project Kuiper’s first operational satellites were sent into orbit in April 2025.
On 23 Jun 2025, the 2nd batch of satellites has been sent into low Earth orbit for Amazon’s Project Kuiper broadband network.
This marked another significant step for AMZN toward competing with SpaceX’s global Starlink network.
By the end of 2025, AMZN is expected to have enough satellites in orbit to start delivering services to customers, eventually including the US government.
Would you now agree that the spate between Trump-Musk is actually good for the different industries overall ?
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Will US Market & CYN Make A Recovery Today ? Thu, 03 July. Picked post.
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NVDA, JPM, UNH - H2 2025 Best US Stocks ? Wed, 02 July. Picked post.
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AAPL chose GSAT is Elon Musk's Starlink loss. Tue, 01 July. Picked post.
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Do you think now is the time to pick up some GSAT before it skyrocket ?
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Do you think AMZN is poised to take over the void left by Starlink and SpaceX ?
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