Cathie Wood Highlights $22B US Government Role in Musk Ventures Amid Trump Feud

Cathie Wood, CEO of Ark Invest, highlights the significant dependence of Elon Musk's companies, including Tesla, SpaceX, and Neuralink, on U.S. government contracts, regulatory approvals, and subsidies. The ongoing feud between Musk and President Donald Trump, sparked by Musk's criticism of a domestic policy bill and Trump's retaliatory threats to pull government contracts, underscores the impact of political tensions on Musk's business strategies. Wood suggests Musk is attempting to distance his ventures from political affiliations and is beginning to retract some threats, such as halting SpaceX's Dragon spacecraft operations, to safeguard government relations. Despite selling $500 million in Tesla shares amid these tensions, Wood remains optimistic about Tesla's long-term prospects, especially its robotaxi division, maintaining a bullish outlook with a $2,600 price target by 2029. Market analysts and brokerage firms show mixed views, with average price targets slightly below current prices and a general 'Hold' rating. Overall, Wood sees the feud as a distraction from the larger ambitions both Musk and Trump share to influence history, emphasizing the intricate balance Musk must maintain between innovation and government reliance.