What began as a strategic bromance between Elon Musk and Donald Trump is quickly devolving into one of the most financially catastrophic fallouts in recent corporate history. With Tesla shares plunging 12% in a single day—wiping out $15.8 billion from Elon Musk’s net worth—the collateral damage from their political and personal split may outpace even the priciest of divorces. And no, they weren’t even married.
From Alliance to Animosity
Once aligned over shared disdain for political correctness, government bureaucracy, and the so-called “mainstream media,” Musk and Trump’s public support for each other now lies in tatters. The rift began behind closed doors, reportedly over federal subsidies and the future of electric vehicles. But it exploded into the open this week when Trump took to Truth Social to say:
“Elon was wearing thin, I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!”
He followed that up with an even more pointed jab:
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
In response, Musk fired back on X (formerly Twitter), with cryptic remarks about “freedom from puppets,” and reposted memes mocking Trump’s age and energy levels—further inflaming a culture war that’s now spilling into financial markets.
Market Mayhem: Tesla Takes the Hit
Tesla (TSLA) investors are feeling the heat. A 12% decline in a single trading session is no small drop—it reflects fears not only over lost government support but also increasing regulatory roadblocks. The highly anticipated June 12 robotaxi launch—meant to be a defining moment for the company—now faces uncertainty. Texas regulators are reportedly “cooling” on their previously enthusiastic stance toward Tesla’s driverless ambitions.
Some analysts are even whispering the unthinkable: that TSLA could fall as low as $226. If that happens, Musk would lose tens of billions more, potentially making this spat more financially painful than the $76 billion Bill Gates lost in his divorce from Melinda after 27 years of marriage.
A Political Divorce with Billion-Dollar Impacts
It’s rare to see political fallout cause such rapid equity erosion. Yet Musk’s empire is uniquely exposed. Tesla, SpaceX, and even The Boring Company rely heavily on federal contracts, regulatory goodwill, and policy tailwinds. With Trump now openly targeting those lifelines—and polling strongly ahead of November’s election—Musk’s investors are justifiably nervous.
It’s not just about contracts. The mood in D.C. and across red-state legislatures is shifting. A second Trump term might bring a reversal of EV mandates, subsidies, and infrastructure incentives—all key pillars supporting Tesla’s valuation.
Entertainment or Catastrophe?
For political junkies, the drama is irresistible. Two of the world’s most ego-driven and unpredictable men throwing haymakers across social media platforms they own? It’s a gladiator match for the digital age. But for Tesla shareholders, it’s a horror show.
Wall Street insiders are calling it “the most expensive Twitter fight in history.”
The Verdict
Technically, Musk and Trump were never in a formal partnership, let alone a marriage. But the scale of financial damage unfolding in real time makes this one of the most valuable relationships to ever implode. If TSLA falls further—and the robotaxi launch flops or is delayed—this “breakup” could cost more than any actual divorce in history.
At least Bill and Melinda Gates managed to keep it classy.
Disclaimer: This article is based on public market movements and statements. It is not financial advice.
