A once-thriving relationship between President Donald Trump and Tesla CEO Elon Musk has deteriorated into a heated exchange of personal insults. Initially characterized by mutual admiration and collaboration, their bond unraveled when Musk criticized Trump’s tax bill, labeling it as unacceptable. This conflict escalated further with Musk linking Trump to controversial figures and accusing his policies of potential economic repercussions. Meanwhile, the stock market reacted sharply, with Tesla's value plummeting significantly amid this public dispute.

In recent developments along the 2024 presidential campaign trail, what initially seemed like a blossoming friendship between two influential personalities turned sour. After Musk distanced himself from DOGE and openly opposed Trump’s fiscal policies, tensions flared up. Trump claimed that Musk’s dissatisfaction stemmed from revoked tax incentives and refusal to appoint his NASA candidate. In retaliation, Musk brought up allegations connecting Trump to notorious financier Jeffrey Epstein and warned about impending recessions due to tariff implementations.

Previously, Musk enjoyed close ties with the administration, attending high-profile events such as Cabinet meetings and UFC fights alongside Trump. Family members were frequent visitors at Mar-a-Lago, while Musk’s son X even traveled on Air Force One and frequented the Oval Office. Trump publicly supported Musk during controversies surrounding Tesla owners protesting DOGE policy changes and praised SpaceX achievements. Despite these past interactions, the current rift has raised eyebrows worldwide.

The financial implications of this feud have been profound. Tesla experienced an unprecedented drop in its market capitalization, losing over $150 billion. Although there was slight recovery on Friday, shares remain down almost 20% year-to-date. Investors are now closely monitoring how this ongoing spat might continue influencing market sentiment towards Tesla and related industries.