President Donald Trump's policies and Elon Musk's association with his administration are causing trouble for the tech CEO's biggest companies.
The first weeks of the second Trump administration have seen major policy changes that have altered the reputation of both Musk and the U.S. on the world stage, and that has trickled down to Musk's companies.
Newsweek contacted Elon Musk via Tesla for comment on how his companies have been affected via email.
Why It Matters
Trump and Musk have been close allies for the last year, and the billionaire businessman plays an important role as the president's advisor and head of the Department of Government Efficiency.
However, Musk takes the health of his largest tech companies extremely seriously, and any issues they might face as a result of politics could test their relationship.
What to Know
The announcement that Trump would place a 25 percent tariff on imports from Canada and Mexico, which sparked an immediate retaliation tariff on U.S. goods, has already had major ramifications for Musk's Starlink.
Although the introduction of the tariffs was suspended for a month, Ontario leader Doug Ford announced that he would be "ripping up" a contract signed with Starlink to provide satellite service to the region.
"Ontario won't do business with people hellbent on destroying our economy," Ford said on social media, pledging to bar U.S. businesses from getting provincial contracts in Canada's largest region.
The Starlink contract would have provided 15,000 homes with high-speed internet and was reported to be worth around $68 million, according to The Guardian.
The future of Starlink in South Africa is also in jeopardy, as the nation's leadership is grappling with the political ramifications of granting Musk permission to launch the satellite service in his country of birth.
South Africa has strict Black empowerment laws that need to be navigated before Starlink can be launched there, but leaders are cautious of making Musk an exception due to his comments on the policies.
The reformists would agree that an exception for Starlink is necessary, while the hardliners see any dilution of the rules as an attack on its quest for racial empowerment," a member of the South African government told the Financial Times.
"But this is complicated because Musk's posture towards South Africa this week also makes many in the ANC very uncomfortable."
It comes after Musk branded the country's empowerment laws as racist, a sentiment supported by Donald Trump, who said on social media on Sunday: "South Africa is confiscating land, and treating certain classes of people very badly. The United States won't stand for it, we will act."
In Europe, Musk's personal approval rating appears to have had a knock-on effect on Tesla sales. Tesla's share of the Swedish car market declined by 2 percent from over 4 percent since January last year, while in Norway it fell to 7.4 percent from 21.7 percent.
Additionally, Telsa sales in the European Union declined by 13 percent since 2024, which coincided with Musk's growing proximity with Donald Trump, as well as his interest in European politics.
Most recently, his criticisms of British Prime Minister Keir Starmer and endorsement of right-wing German party AfD have put him more in the public eye in Europe.
What People Are Saying
Ontario Premier Doug Ford said on X: "Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
"Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.
"Canada didn't start this fight with the U.S., but you better believe we're ready to win it."
President Donald Trump told reporters on Sunday: "I think Elon is doing a good job. He's a big cost-cutter. Sometimes we won't agree with it and we'll not go where he wants to go. But I think he's doing a great job."
What Happens Next
Musk is continuing his investigation of the Treasury's payment system as part of the Department of Government Efficiency's attempt to reduce federal spending.
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