House Democrats Jim McGovern of Massachusetts and Rosa DeLauro of Connecticut say their Republican colleagues in Congress caved to the demands of Elon Musk, sinking a bipartisan government funding bill that would have regulated U.S. investments in China.

Congress passed a separate stopgap funding bill over the weekend, averting a government shutdown.

In a series of posts on X, McGovern said more could have been accomplished. The scrapped provision “would have made it easier to keep cutting-edge AI and quantum computing tech — as well as jobs — in America,” he wrote. “But Elon had a problem.”

Tesla, run by Musk, is the only foreign automaker to operate a factory in China without a local joint venture. Tesla also built a battery plant down the street from its Shanghai car factory this year, and aims to develop and sell self-driving vehicle technology in China.

“His bottom line depends on staying in China’s good graces,” McGovern wrote about Musk. “He wants to build an AI data center there too — which could endanger U.S. security. He’s been bending over backwards to ingratiate himself with Chinese leaders.”

SpaceX, Musk’s aerospace and defense contractor, has reportedly withheld its Starlink satellite internet service over Taiwan at the request of Chinese and Russian leaders. Taiwan is a self-ruling democracy that Beijing claims as its territory. Taiwan’s status is one of the biggest flashpoints in U.S.-China relations.

DeLauro, the top Democrat on the House Appropriations Committee, wrote in a letter to Congress on Friday that Musk needs “Chinese government approvals for his company’s projects in the country.” It’s concerning, that Musk “has ingratiated himself with Chinese Communist Party leadership,” she wrote.

In the letter, DeLauro referred to the Tesla and SpaceX CEO as “President” Musk, alluding to the fact that the world’s richest person began railing against the prior funding bill on Wednesday, before President-elect Donald Trump came out with a statement of his own.

Trump had wanted the GOP to sink the bill, and issue a new one that would raise the debt ceiling so he could avoid that fight during the start of his second term in office. The stopgap funding bill, which President Joe Biden signed on Saturday, did not include the two-year suspension of the U.S. debt limit that Trump was seeking.

Musk responded to DeLauro’s concerns by calling her an “awful creature” in a post on X.

After acquiring Twitter in 2022, Musk rebranded it X and used it to help propel Trump back into the White House, becoming a close adviser and major backer to the incoming president along the way.

Musk contributed $277 million to the Trump campaign and other Republican causes during the 2024 cycle, according to Federal Election Commission filings. Since the election in November, Musk has become a nearly constant presence at Trump’s side, including in meetings with foreign leaders.

Trump appointed Musk to co-lead a group that’s not yet formed, but will be tasked with finding ways to cut regulations, personnel and budgets.

WATCH: Musk’s influence on government

Tesla CEO Elon Musk, a meagdonor and adviser to President-elect Donald Trump, is now seeking to influence Germany’s election, posting an endorsement on X of the country’s far-right Alternative for Germany (AfD) party.

In a post Thursday night, Musk wrote, “Only the AfD can save Germany.”

Musk, who has over 200 million listed followers on the site that he owns, made the comment while sharing a post from far-right influencer, Naomi Seibt, who claimed that Germany’s “presumptive next chancellor Friedrich Merz (CDU) is horrified by the idea that Germany should follow Elon Musk’s and Javier Milei’s example,” referring to the president of Argentina.

Seibt has a history of promoting white nationalist ideology, The Guardian previously reported, and has denied the validity of scientific consensus around climate change, namely that it’s driven by fossil fuel emissions.

In a post on X, Sen. Chris Murphy (D-Conn.) called Musk an “out of touch billionaire running the incoming Trump Administration” who “enthusiastically supports the neo-Nazi party in Germany.”

“The AfD’s mission is to rehabilitate the image of the Nazi movement,” Murphy wrote. He added that one of the party’s leaders has a license plate that’s “an open tribute to Hitler,” and another “described Judaism as the ‘inner enemy’ in Germany.”

Musk and Tesla’s investor relations team didn’t immediately respond to requests for comment.

On Friday, German Chancellor Olaf Scholz, a center-left Social Democrat, dismissed Musk’s claim that only the far-right party can “save Germany.”

Under Scholz’s leadership, Germany‘s left-wing coalition collapsed in November, and AfD is currently polling in second place ahead of February elections. Throughout Germany, where the AfD has placed highly in state elections, the other parties have generally refused to form coalitions with it. 

According to Pew Research, “AfD has campaigned against weapon deliveries to Ukraine and called for an end to sanctions on Russia,” a view shared by Musk.

Far right parties have also gained ground in the Netherlands, Austria, Finland and elsewhere. Many cheered Trump’s election, which Musk helped finance through $277 million in contributions to the campaign and related Republican causes.

Tesla’s stock is up about 75% since Trump’s victory, surpassing its prior all-time high from 2021 last week.

AfD has reportedly criticized Tesla and its factory outside of Berlin. The party claimed many of Tesla’s thousands of workers there commute in from Poland or Berlin, limiting the economic benefits to the local community in Brandeburg.

The AfD generally views electric vehicles as part of an ideological climate movement, and not good for Germany’s auto industry.

Europe has been a tough market for Tesla this year. According to data from the European Automobile Manufacturers Association, sales of Tesla cars declined 40.9% in November, exceeding the overall 9.5% dip in sales of battery electric vehicles.

Elsewhere in Euopre, Musk endorsed right-wing Italian Prime Minister Giorgia Meloni and has voiced support for Nigel Farage in the U.K, a populist politician and head of Reform UK. In South America, Musk endorsed and has a friendship with Argentina’s President Milei, a self-described anarcho-capitalist.

WATCH: Musk’s early influence on government

Bitcoin fell sharply on Friday amid broader investor caution toward risk assets.

Bitcoin dipped below the $93,000 mark earlier in the day before trading above that price in volatile trade.

By around 8:26 ET, bitcoin was trading at $93,809.39, according to Coin Metrics, down around 8% from 24 hours before when it was priced above $102,000.

The cryptocurrency hit an all-time high above $108,000 just this week, but has since sold off aggressively.

The Federal Reserve rattled markets in recent days, as it signaled fewer interest rate cuts next year. Equity markets took a hit, filtering through to crypto assets.

The price of bitcoin price has more than doubled this year, supported by a number of factors including the launch of spot exchange-traded funds and the U.S. presidential election of Donald Trump. He has pledged pro-crypto policies and his victory at the polls helped propel bitcoin to its latest record high.

With some markets on edge due to the Fed, some of the steam has come out of assets that have seen big gains this year.

Tesla, which has been another big beneficiary of Trump’s win, continued its post-election slide with shares falling on Friday in premarket trade. Other big names like Nvidia were also lower during the session.

Bitcoin’s fall also dragged down other cryptocurrencies. Ether was down around 12%, and XRP plunged 10% from 24 hours prior, at around 8:27 a.m. ET.