Shockwaves in the Market
The Musk vs Trump market impact started like a normal fight between two big names. But no one thought it would shake the market this much. It began when Donald Trump introduced a new law to reduce support for electric vehicles (EVs). This was clearly bad news for Tesla, the top EV company owned by Elon Musk. Musk, known for speaking his mind, reacted on social media. He called the move “a disgusting attack” on clean energy and innovation. What seemed like a small political issue turned into a major money problem.
Trump replied by making fun of Musk, saying he had “Trump Derangement Syndrome.” The fight got personal very fast. Soon, investors, experts, and the media were all paying attention. The Musk vs Trump market impact was no longer just talk—it was a serious threat to money and investor trust.
The Viral Tweet
As the heat turned up, Musk went even further—he made a shocking post on social media linking Donald Trump to the Jeffrey Epstein scandal. This explosive claim blew up across the internet. The tweet went viral in minutes and left both supporters and critics stunned. Media channels, influencers, and market commentators all jumped in. The news dominated headlines, with every major outlet talking about the “Musk vs Trump” drama. Investors started fearing what would come next. Nobody knew whether this was just a PR stunt or the beginning of a deeper political war.
This moment marked the turning point. What started as a disagreement now felt like a national scandal. The Elon Musk Trump feud had transformed from a social media drama into something with real-world consequences. Financial markets, especially Tesla stock and cryptocurrency, started reacting violently as fear and uncertainty spread like wildfire.
Tesla’s Big Crash
Within hours of Musk’s tweet, the market responded sharply. Tesla’s stock plummeted by as much as 18% in just one trading session. This was the company’s biggest single-day fall since the COVID-19 market crash. The drop wiped out approximately $150–$180 billion in Tesla’s market capitalization. For a company that had recently joined the elite “$1 Trillion Club,” this was a brutal exit. Investors who had their life savings tied to Tesla saw their portfolios crash in real-time. Confidence in the company started shaking, and many analysts began issuing warnings for the days ahead.
The situation became worse when rumors spread that Trump might cancel government contracts with both Tesla and SpaceX. These contracts represent a significant portion of Musk’s business, especially in the US. Suddenly, the future of Tesla didn’t look so secure anymore. Traders began dumping shares, trying to avoid further losses. The stock market was officially in panic mode, and the Elon Musk Trump feud was to blame.
₿ Crypto Joins the Fall
It wasn’t just the stock market that suffered. The crypto world also took a serious hit. Musk has always had strong ties to certain cryptocurrencies like Dogecoin, and his statements often affect their prices. As the feud escalated, the crypto market turned red across the board. Bitcoin dropped up to 4.4%, while Ethereum lost over 6.5%. Dogecoin, which is often seen as Musk’s favorite coin, crashed nearly 10%. Even niche tokens like Trump Coin tanked by 12%, showing just how much this feud affected every corner of the financial world.
The impact was more than just price dips. Over $1 Billion in futures positions were liquidated due to sudden price changes. Long traders, expecting the market to rise, were wiped out in hours. Platforms saw massive sell-offs, and social media was filled with panic posts from people who had lost thousands—or even millions—in minutes. The market temporarily entered a bearish zone, and many investors decided to exit altogether until the feud cooled down.
Elon Steps Back: Markets React
Seeing the chaos, Musk finally took a step back. In a rare move, he issued a public apology, admitting that his comments “went too far.” The apology came as a surprise to many, considering Musk’s usual style. But it worked to some extent. The market responded positively. Tesla shares bounced back by around 5–10%, and some cryptocurrencies also started to recover. Media outlets labeled the apology as a “temporary truce” between the two giants.
However, financial experts warned that this was only a short-term recovery. The tension between the two figures wasn’t truly resolved. Trump had already hinted that if he returned to power, he would cancel all EV tax incentives and freeze all federal deals with Musk’s companies. This threat still looms over the future of Tesla and SpaceX, especially in the American market. So while the apology slowed the bleeding, it didn’t completely stop the risk.
Smart Money Still Cautious
The Elon Musk Trump feud has shown the market how unstable things can get when business leaders and politicians go head-to-head. If Trump comes back into office, the policy changes could heavily damage Musk’s empire. Removing EV incentives would make Tesla cars more expensive for American buyers, reducing sales drastically. Canceling or freezing contracts could hurt SpaceX’s operations, especially those linked to NASA and defense.
This kind of political interference in business sets a dangerous precedent. Investors now know that even the world’s richest and most powerful individuals are not safe from sudden political fallout. It’s a reminder that markets are not just driven by numbers, charts, or profits. They are also shaped by personalities, politics, and emotions.
Quick Market Recap
| Asset | Drop % | Loss Estimate |
|---|---|---|
| Tesla Stock | 14–18% | $150–$180 Billion |
| Bitcoin (BTC) | 1.7–4.4% | $308 Million Liquidated |
| Crypto Market | ~5% Overall | $150–$200 Billion Total |
| Dogecoin (DOGE) | 7.9–10.7% | Significant Drop |
| Ethereum (ETH) | ~6.6% | Part of Market-wide Crash |
| Trump Coin ($TRUMP) | 10–12% | Heavy Loss |
What We Learned
The Elon Musk Trump feud wasn’t just about ego or policy. It showed us how powerful public fights can shake global markets. A single tweet from Elon Musk and a harsh comment from Donald Trump caused billions of dollars in losses across multiple industries.
For investors, the message is clear: Always be aware of political risk. Even if a company is strong, market reactions to public drama can be brutal. Emotions often win over logic in trading, especially when headlines dominate social media.
In the end, the feud gave us a lesson in how fragile investor confidence really is—and how quickly fortunes can change when power, pride, and politics collide.
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