Markets responded with a downturn to the open conflict between Donald Trump and Elon Musk. Tesla dropped by 14%, Bitcoin fell nearly 3%, and the memecoin $TRUMP lost 10%. Within 24 hours, nearly $1 billion in crypto positions were liquidated.
Escalation of the Conflict Between Trump and Musk
On June 5, Donald Trump, during a meeting with the German chancellor at the White House, expressed dissatisfaction with Elon Musk, calling him a "disappointment." Musk responded on X, stating that he was the one who helped Trump win the election:
"Without me, he would have lost," the businessman wrote.
The conflict quickly turned personal — Musk supported the idea of Trump’s impeachment and hinted at his possible connections to Jeffrey Epstein’s affairs.
Economic Consequences
As part of the dispute, Musk also criticized Trump’s plan to impose global tariffs, stating it would trigger a recession in the second half of the year. In response, Trump proposed canceling government subsidies and contracts awarded to Musk’s businesses. These include a $4.9 billion NASA contract under which SpaceX supplies the crewed Dragon spacecraft to the ISS — currently the only American vehicle capable of delivering people to orbit.
In reply, Musk posted that he would immediately begin winding down the Dragon program, but reversed his decision a few hours later.
Financial Losses for Tesla and the Crypto Market
Tesla shares dropped 14% on June 6 and are down 16% since the conflict began. According to Yahoo Finance, they are currently trading 33% below their price on inauguration day. Market participants fear that the feud will lead to a reduction in government support for Tesla and Musk’s other ventures.
