President Donald Trump and his frequent ally, Elon Musk, had a falling out over tax policy last spring, but they may have found a shared enemy big enough to rekindle their billionaire bromance: the European Union (EU). The relationship between Washington and Brussels has been tense since the new Trump administration took office, but the EU’s recent attack on Musk’s company provides a strong point of unity.
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The tension was clear this weekend when the European Commission fined Musk’s X social-media platform $140 million for breaking rules in its new Digital Services Act. Musk, who hates regulation, immediately called the European project a “bureaucratic monster” unfit for democracy. He publicly demanded that the EU be abolished, arguing that sovereignty should be returned to individual countries.
The EU’s $33 Billion War against U.S. Tech
Trump officials quickly joined Musk’s side, vowing to “challenge burdensome regulations that target U.S. companies abroad” and “opposing censorship”. This response highlights the deep level of intensity defining relations between the two powers.
The EU’s years-long effort to control U.S. tech giants has been fierce. The powerful Commission has fined American tech firms more than $33 billion over the past decade. The EU was recently in the news again for opening a formal antitrust probe into Meta Platforms (META) for its use of artificial intelligence in WhatsApp. The Trump administration has long characterized the EU’s actions as a barrier to free trade and has promised to impose “substantial additional tariffs” on countries that discriminate against American technology.
Regulatory Danger Ahead Forces Strange Alliances
Both Musk and Trump may soon face a critical problem that forces them to rely on the EU, whether they like it or not.
President Trump told reporters over the weekend that Netflix’s (NFLX) proposed $72 billion takeover of Warner Bros. Discovery (WBD) will be subject to a Justice Department review that “could be a problem”. This giant media merger would certainly grab the attention of regulators in Brussels, too. If the deal fails because of EU demands, it could save Trump from being accused of meddling in the fate of Warner Bros.’s CNN network.
Musk, meanwhile, faces a long series of conflicts as he develops xAI (xAI), which X purchased earlier this year in a deal valued around $33 billion. This AI group is key to Musk’s bigger plans for his robotics division, Optimus, and his chatbot, Grok. In short, both powerful figures may soon desperately need support from the very EU regulators they now publicly attack.
Key Takeaway
Elon Musk and Donald Trump have found common ground in their hatred of the EU after Brussels fined Musk’s X platform $140 million. This shared enemy is likely to unite the pair, especially as both face future regulatory threats from the EU over major deals, including the Netflix-Warner Bros. Discovery merger and Musk’s xAI expansion.
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, Tesla (TSLA) remains the main way retail investors can participate, as most of his other ventures are privately held. Wall Street analysts currently give Tesla stock a consensus Hold rating, based on the opinions of 34 analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, 12 recommend a Hold, and 10 recommend a Sell.
The average 12-month TSLA price target sits at $383.54. This target implies a downside potential of 13.73% from the last price.
