Remember when Elon Musk and Donald Trump were on the same page? Back in late 2024, Musk poured hundreds of millions into Trump’s campaign and even joined him in the Oval Office as a thoughtful advisor. That bromance helped catapult Musk’s net worth—Musk himself later said without his backing, Trump “would have lost the election, Dems would control the House and the Republicans would be 51‑49 in the Senate.” It was a classic case of old-school political influence translating into market enthusiasm, boosting Tesla’s stock and Musk’s fortunes.
Backlash on the Big Bill
Fast forward to June 2025: controversy arrives in the form of the “One Big Beautiful Bill” — a $2.4 trillion tax-and-spending package pushed by the Trump administration and passed with support from a Republican-controlled Congress. Meant to supercharge the economy through infrastructure upgrades, defense boosts, and expanded tax incentives for U.S. manufacturing, the bill also blew up the federal deficit—something Musk had long warned against. The Tesla and SpaceX CEO called it a “disgusting abomination” on X, even resurfacing Trump’s old tweets about budget discipline to shame him publicly.
Trump didn’t let it slide. He accused Musk of having “Trump derangement syndrome,” ordered cuts to federal contracts linked to Musk’s ventures, and openly questioned Tesla’s eligibility for electric vehicle subsidies. The former president painted Musk’s criticism as a betrayal, given the political support Musk had offered months earlier.
Things escalated from there. Musk threatened to pull SpaceX’s Dragon capsule from upcoming NASA flights, citing government unpredictability. He walked that back days later, but the political damage was done—Trump called him “disappointing” at a rally, drawing a clear line in the sand between two titans who once stood united.
Net Worth Rollercoaster
The fallout hit Musk’s net worth hard. Tesla shares plunged over 14%, wiping out about $150 billion in market cap and slicing around $34 billion off Musk’s fortune in a single day—the second-largest drop ever tracked by Bloomberg’s index. His personal wealth tumbled to roughly $334–388 billion before partially recovering.
Market & Political Fallout
The financial sting hasn’t gone unnoticed. Tesla investors scrambled, options volatility spiked, and analysts including Business Insider chalked up one of Musk’s worst single-day losses ever. SpaceX’s government contracts—worth billions—are now in limbo, prompting concern from Cathie Wood of ARK Invest, who warned Musk’s public spat with Trump exposes just how reliant Tesla, SpaceX, and Neuralink are on federal support. Moody’s even downgraded the U.S. debt rating after passing the bill—adding an extra layer of uncertainty.
Trump’s allies, including VP JD Vance, see the split as a defining moment in GOP unity—some rooting for a comeback, others leaning into a new political direction.
The Tweet-Fueled Showdown
This isn’t just a policy affront—it’s a full-blown digital standoff. Musk didn’t hold back, blasting Trump’s hypocrisy by reposting old anti-debt tweets: “I couldn’t agree more,” he quipped. Trump, for his part, wielded social media to warn Musk off threatening his business interests—turning platforms X and Truth Social into a political battleground.
Amid the chaos, Musk floated the idea of a “new party” appealing to the “80% in the middle,” stirring both excitement and skepticism online. Meanwhile, voices like Cory Booker publicly refused Musk’s donations over the row.
What This Means for Musk’s Empire
The key question now: what’s the lasting impact on Tesla, SpaceX, and beyond?
Tesla is vulnerable: any further strife with the administration could risk EV subsidies and slow permit approvals. As ARK’s Wood warned, Musk’s outspokenness may hamper the very federal support his companies depend on.
SpaceX seems similarly exposed: Trump’s threats to cut contracts put NASA partnerships in jeopardy—raising disruption risks for ISS missions or Artemis moon plans.
The broader signal: this isn’t just personal—it’s an inflection point. The collision between Musk’s tech libertarian stance and Trump’s populist base highlights a wider rift between Silicon Valley and MAGA politics.
Final Thoughts
What started as political theater has turned into a full-blown market, policy, and cultural clash. Musk’s influence—bolstered by over $290 million in campaign spend—has always been controversial, but the fallout showed the limits of billionaire clout. Platform wars, budget battles, and regulatory threats now loom larger than ever.
At the end of the day, this showdown is more than a rich guy’s tantrum—it’s a test of how far personal power can go when it meets politics, contracts, and printed checks. And lovers of both Tesla stock and SpaceX rockets are watching closely.
Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website.
