Significant Market turmoil Erupts Following Musk and Trump Dispute
In a matter of hours, Tesla’s valuation nosedived by an eye-watering $152 billion, while TrumpCoin’s market capitalization shrank by over $100 million. This sharp financial downturn stands as one of the most substantial single-day losses recorded for both assets in recent history.
The Breakdown of Musk and Trump’s Public Partnership
The cordial rapport between Elon Musk and former president Donald Trump had been unraveling for several weeks but reached a boiling point on Thursday. Musk took to his social media platform X to denounce Trump’s “One Big Gorgeous Bill,” which includes immigration restrictions, reductions in green energy incentives, and is forecasted to increase the U.S. deficit by $2.4 trillion. In retaliation,Trump fired back on Truth Social-his proprietary platform-accusing Musk of opposing the bill solely because it would eliminate electric vehicle tax credits that benefit Tesla.
This confrontation quickly escalated into a flurry of posts from both parties, with Musk alleging that Trump is connected to undisclosed Epstein-related documents-a claim he suggests explains their secrecy.
Market Repercussions Amid Heightened Political Strife
Tesla’s stock plunged roughly 14% at the time of reporting-the steepest daily market cap drop for the company in years-while Trump’s cryptocurrency token tumbled nearly 10%. This clash represents a high-stakes showdown with significant ramifications for all involved stakeholders.
Political Retaliation threatens Lucrative Corporate Deals
Trump has threatened to withdraw government subsidies and contracts that have generated billions for Tesla and SpaceX alike.In response, Musk announced plans to retire SpaceX’s Dragon spacecraft-a vital vehicle used by NASA for transporting cargo and astronauts to the International Space Station-in an apparent act of defiance.
Steve Bannon, a vocal supporter of Trump who has previously criticized Musk publicly, disclosed he is advising investigations into Musk’s immigration status amid allegations that he may have falsified visa facts during his early years in America. Bannon claims such findings could trigger deportation proceedings against him.
musk’s Immigration Status controversy Intensifies Conflict
The debate surrounding Elon Musk’s legal standing dates back decades with reports suggesting possible misrepresentations on visa applications from the 1990s.These allegations have heightened scrutiny as political tensions escalate between him and former allies within management circles.
Tesla Grapples With Product Launch Delays Amid Stock pressure
This stock decline comes at a critical juncture as Tesla prepares to debut its long-awaited robotaxi service in Austin, Texas-a project delayed multiple times but now anticipated imminently according to internal sources. CEO Elon Musk has emphasized repositioning Tesla not merely as an automaker but rather as a robotics company focused on autonomous driving technology alongside ambitions like humanoid robots.
Musk also pledged forthcoming releases from his AI venture xAI; however, these launches have faced delays similar to other initiatives this year across his enterprises.
Recent Financial Results Highlight Operational Challenges
Tesla’s latest quarterly earnings revealed declines across production volumes, deliveries, and sales-particularly within European markets where competition intensifies rapidly. The company has scaled back plans for manufacturing affordable electric vehicles using advanced production techniques once championed by leadership.
To reassure investors amid uncertainty fueled partly by these setbacks-and mounting political friction-Musk announced stepping down from his department of Government Efficiency role (DOGE) so he can concentrate more fully on managing his companies including Tesla itself.
Musk Addresses EV Subsidies Debate Amid Policy Disputes
Musk denies that disagreements over electric vehicle subsidies were behind his public split with Trump despite earlier suggestions during campaign periods when he claimed federal tax credits were unneeded for Tesla sales success.
Nonetheless-in recent posts-he voiced frustration about proposed cuts affecting EV/solar incentives while leaving oil & gas subsidies intact; calling this disparity “very unfair” yet still supporting removal of excessive spending unrelated directly related benefits within legislation under consideration.
A Global movement Against Both Figures Gains Momentum
By February 2025 thousands worldwide protested policies championed by both Elon Musk and Donald Trump-from climate change stances thru actions taken under DOGE leadership.
What began organically evolved into an organized campaign dubbed “the Tesla Takedown.” On Thursday afternoon organizers issued a clear rallying cry: “Sell, Sell, Sell,” urging shareholders toward divestment amidst ongoing turmoil surrounding corporate governance intertwined with political conflict.
