Elon Musk and Trump's fallout over four days costs Tesla $1 trillion
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Elon Musk and Trump's fallout over four days costs Tesla $1 trillion
"After all, the vast open plain was a misplaced trust."
Navigating Web3 tides with focused insightsAuthor: Moonshot
Musk and Trump have been exchanging blows for four days now — they’ve completely fallen out.
The main stage of this drama has been Musk’s own platform, X, amplified by mainstream media like The Wall Street Journal and CBS fanning the flames. It's become one of the most captivating reality shows in recent memory — a goldmine for social media traffic.
The feud has been so intense, packed with twists and turns, that it's delighted the press and left onlookers stunned.
Even across the Pacific on Weibo, these two have dominated trending topics recently｜Image source: Weibo
Last week, Musk was still the "top bro" at the White House. On May 30, Trump publicly bid farewell to Musk after his departure from the Department of Government Efficiency, saying emotionally: "Elon will always be with us, helping every step of the way." But within three days, their friendship collapsed faster than a flipped page.
Musk transformed into an outright anti-Trump crusader, while Trump fired back: "Elon is so annoying." And the biggest casualty in this farce? Tesla.
Is this a game of power, or just a clash over unequal interests?
01 When Bros Turn Into Keyboard Warriors, It Gets Ugly
The story began on June 3. While Musk often posts controversial takes on X, this time he unleashed 25 consecutive posts shouting “KILL THE BILL!”
He wasn’t expressing love for *Kill Bill*—he was fiercely opposing Trump’s flagship “Big Beautiful Bill,” a sweeping tax and spending bill.
The core of the “Big Beautiful Bill” is raising the U.S. debt ceiling by $4 trillion and revitalizing America through infrastructure and tax cuts—making America “great again.”
As the former head of DOGE (Department of Government Efficiency), Musk had struggled for months trying—and failing—to cut $1 trillion from the federal deficit. This bill was a direct slap in the face.
Musk went full keyboard warrior: “I can't take it anymore—this massive, infuriating, pork-filled congressional spending bill is a disgusting abomination. Anyone who votes for it should be ashamed.”
He then warned: “Once the Big Beautiful Bill passes, the U.S. economy will ‘crash again.’” What Musk didn’t mention? He himself is one of the biggest players in financial markets.
Musk also broke down the math for his followers, calling the bill an “absurd, politically-motivated spending spree” that would increase the already-huge budget deficit to $2.5 trillion. “The American people will be stuck with this mountain of debt,” he said. “Congress is bankrupting the nation!”
After venting, Musk moved to action—urging his 200 million followers on X to call their members of Congress. “Call your representatives. Pressure Congress. We can’t let this bill bankrupt America. Kill it with fire!”
Among dozens of posts, Musk also mocked Trump’s tariff policies, amplified supportive voices, and dug up Trump’s old tweets from 2012–2013, sarcastically praising them as “words of wisdom,” “couldn’t agree more 🇺🇸🇺🇸,” and asking, “Where did this wise man go? Possessed?”
Sarcastic master Musk｜Image source: X
Musk ranted for two days, but Trump stayed silent—only having his press secretary say: “The President knows Elon’s position, but it won’t change his own. This is a big and beautiful bill, and he’ll push forward firmly.”
That’s when mainstream media poured gasoline on the fire. The Wall Street Journal first reported that Trump was “fed up” with Musk inside the White House, allegedly saying in private meetings: “Does Elon want to be presidential advisor? Maybe he should focus on running Tesla first!”
Musk responded by giving interviews on CBS, Fox, and other networks—still attacking the “Big Beautiful Bill,” Congress, and Republicans, but carefully avoiding naming Trump directly. A classic case of “indirect confrontation.”
Faced with Musk’s relentless barrage, Trump finally snapped during a White House interview: “I’m disappointed in Elon. I helped him a lot—he knows better than anyone how useful this bill is. Now suddenly he objects? Only because he found out we’re forcing cuts to electric vehicles.”
Translation: Elon doesn’t care about America—you’re just scared your EVs won’t sell.
Musk, seemingly live on air, immediately replied: “Wrong. No one ever showed me this bill.”
Then he escalated: “Without me, Trump would’ve lost the election. Truly ungrateful.” Even more dramatically, he launched a poll: “Is it time to form a new party representing the 80% political middle?” Not missing a beat, he added a jab: “Trump has 3.5 years left. My term lasts decades.”
Musk had reason to boast—he spent at least $250 million supporting Trump and other Republicans in the 2024 elections, even risking the public image of both himself and Tesla.
Now Trump was furious. He took to his own social media, Truth Social, to blast Musk.
“Elon has become insufferable. I invited him to leave, and revoked that EV mandate—forcing everyone to buy unwanted electric cars (he knew I’d do this months ago!). Now he’s completely unhinged!” Not only making his disdain clear, but implying Musk’s opposition stems purely from self-interest.
Then came the threat: “The best way to save hundreds of billions in the budget is to terminate the government subsidies and contracts Elon receives. I’m amazed Biden hasn’t done it yet!”
Boom. Tesla’s stock plummeted, dropping as much as 14.26% in a single day—wiping out around $150 billion in market value.
Image source: Truth Social
Believe it or not, the two-day war hadn’t even peaked. Once Trump joined the fray, Musk fully tore off the gloves.
“Time to drop the bomb: @President Trump is on Epstein’s list—that’s why he doesn’t want it released.” He capped it with a chillingly casual sign-off: “Have a great day! DJT.”
Epstein, infamous for sex trafficking and abuse involving minors, died mysteriously in prison in 2019. His client list—the so-called “Lolita Island” roster—remains a dark secret.
This sent Democrats into ecstasy. Democratic politicians across the spectrum seized the moment, demanding: “Release the documents. Let us see too.”
Perhaps offended by Trump questioning his patriotism, Musk then declared: “Given the President’s statement about canceling my government contracts, SpaceX will retire the Dragon spacecraft immediately.”
Remember, SpaceX is one of the U.S. government’s largest aerospace contractors and a key NASA partner. America’s entire human spaceflight program currently depends on SpaceX’s Dragon capsule. Just two months ago, NASA relied on a Dragon mission to bring home two astronauts stranded in space for months—saving American national pride.
Musk’s message was clear: You accuse me of profiting from government deals, of only pushing EVs? Let me show you what I’ve truly done for America.
He then shared multiple patriotic-themed posts and simply replied “Yes” to calls for Trump’s impeachment.
At this point, Musk wasn’t just criticizing policy—he was challenging Trump’s legitimacy as president. There was no going back.
But if we ask who suffered the most in this war of words, the answer remains: Tesla.
02 Tesla, the Innocent Victim
From June 3 to June 6, Tesla’s stock rollercoastered—losing up to $150 billion in market value in a single day, a historic record.
Investors saw Musk busy feuding with Trump amid worsening policy conditions and started fleeing.
In 2024, the global EV market grew by 25%, but Tesla’s sales declined by 1%. Its U.S. market share dropped from 70% in 2021 to under 50% in 2024.
This year is even worse: Tesla’s Q1 2025 sales hit a three-year low, profits plunged 71%, and during the peak of the tariff war, its stock一度 fell 45% year-to-date.
Tesla even issued a warning to investors: “Changes in political sentiment may negatively impact product sales.”
In other words: Musk’s political gambles are dragging Tesla down.
It got worse. Consumers aren’t just refusing to buy—they’re destroying cars.
In recent months, a nationwide “Anti-Musk, Anti-Trump” (Tesla Takedown) movement has emerged. Tesla service centers have been vandalized, charging stations set on fire.
WSJ previously reported Tesla might seek a new CEO｜Image source: Wall Street Journal
After rumors spread (later denied by Tesla) that the board was looking for a new CEO, Musk quickly stepped back from DOGE, saying he’d reduce his political involvement and refocus on Tesla.
Trump isn’t unscathed either. His company, Trump Media & Technology Group, saw its stock drop 8% during the feud.
Crypto markets were devastated—Ethereum fell 8%, Bitcoin lost $4,000 in a single day.
Musk is ultimately a businessman, not a true politician. His brief stint in government via DOGE left him disillusioned. On X, the hashtag #FireElon exploded, and he received numerous death threats.
Meanwhile, Trump’s tariffs have sharply increased Tesla’s production costs. The Optimus robot project is stalled due to restrictions on Chinese rare earth materials. And now SpaceX is publicly at odds with the U.S. government and NASA.
The irony? These very problems were created by Musk himself—after he spent over $200 million in 2024, personally and through his platforms, to help re-elect Trump.
Politicians play games; companies pay the price. Musk is now learning what it means to be the “carefully cultivated leek”—harvested by his own hand. His companies are being dragged down by his political adventures.
Still, this breakup wasn’t entirely unexpected.
Trump has never liked the EV business. Back in 2013, he tweeted that Tesla was “burning cash for nothing.” Worse, during his 2024 campaign, he championed “America First,” promoted traditional manufacturing in the Midwest, and was determined to make gas-powered trucks and factory jobs “great again.”
Meanwhile, after Trump’s victory, Musk pushed an elite-driven “Dark MAGA” agenda, alienating Trump’s core base of “redneck MAGA” supporters.
In short: Musk wants America to be Iron Man. Trump just wants Americans driving old pickup trucks again.
This powerful alliance? Ultimately a misstep.
Of course, both stars of this White House duet are businessmen at heart. How things unfold next remains uncertain—they could just as easily become best friends overnight. The only winners? Spectators. The losers? The stock market and the industry.
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