June 7, 2025:
Musk-Trump Feud Threatens xAIs $5B Debt Deal - The online feud between Elon Musk and President Donald Trump could impact Musk's company, xAI, as it seeks to raise $5 billion in debt. The tension unfolded publicly while Morgan Stanley was pitching the debt deal to investors, causing trading prices to dip to 95 cents on the dollar.
To offset declining prices, Morgan Stanley might need to sweeten the deal with incentives like higher interest rates. The strained dynamic between Musk and Trump adds uncertainty to the financial prospects of Musk's recently merged ventures, including his social media platform, X.
