The Tumultuous Relationship of Donald Trump and Elon Musk (3 of 4)

Markets React to Fallout

As Trump and Musk continued to feud, investors started to take notice, and the market followed suit. Tesla’s stock tumbled almost 10%, which wiped out over $150 billion in market value in just one single day. The huge plunge was not just a reflection of investor anxiety—it was also a ripple effect on federal contracts, EV incentives and Musk’s dual role as a newly political leader and a corporate executive.

Trump’s Regret Adds Fuel to the Fire

Following the Epstein allegations, Trump expressed his disappointment publicly. He said that Musk’s actions were disrespectful and that he could face consequences for Tesla and SpaceX, including the possible forfeit of up to $22 billion in federal government contracts. Following this, Musk removed some of the incendiary comments and apologized while admitting that he might have taken things too far. Trump ended up saying that the gesture was nice, but some insiders are advising that the damage might be too far.