'Ye Dosti Hum Nahi Todenge...' Elon Musk Vs Donald Trump Feud Escalates, Tesla Stock Price Tumble

Elon Musk and Donald Trump have gone from allies to adversaries, and the financial damage is already massive. Tesla’s stock plunged over 14% this week, wiping out $150 billion in market value. It’s one of the biggest losses in the company’s history (more than Starbucks is worth).

What started as a political bromance is now a messy fallout. Musk’s bold support for Trump before the 2024 election has backfired in the worst way, and Wall Street isn’t taking it lightly.

Elon Musk's Open Support To Donald Trump Before Elections

Before the 2024 US elections, Musk wasn’t just backing Trump, he was all in. He poured in donations, helped launch a pro-Trump super PAC, and even took on a temporary government role as head of the Department of Government Efficiency (DOGE). His loyalty was loud and clear. He had posted on social media, “If we want to preserve freedom and a meritocracy in America, then Trump must win.”

Their alliance looked solid. But it didn’t take long for the cracks to show.

The BIG Fallout And Tesla’s Stock Crash

The fallout started when Trump rolled out his “Big Beautiful Bill”—a flashy budget and tax plan. Musk wasn’t a fan. He called it “a disgusting abomination” and slammed it for wiping out EV tax credits while boosting fossil fuel industries. He accused lawmakers of turning their backs on clean tech and climate innovation.

Trump didn’t take that lightly. He fired back on Truth Social, threatening to cancel all government deals with Musk’s companies. He wrote, “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.”

That hit hard. Tesla’s investors panicked and sold fast. Musk’s own fortune took a $20 billion hit in a single day.

The tension started after Musk criticised Trump’s budget bill. He called it “a disgusting abomination” for slashing EV tax credits and backing fossil fuels. Trump fired back with threats. Musk didn’t hold back either: “Without me, Trump would have lost the election.” He also called Trump’s actions “such ingratitude.”

Tesla’s robotaxi dream, especially its upcoming launch in Austin, Texas, now looks uncertain. Analyst Dan Ives warned, “If you start to heighten the regulatory environment, that could delay that path… There is a fear that Trump is not going to play Mr. Nice Guy.”

SpaceX, Starlink May Be Next In Line

Tesla isn’t the only company in trouble. SpaceX could lose key NASA and Pentagon contracts if Trump follows through. The space firm is a major player in US missions and relies heavily on federal deals.

Starlink, Musk’s satellite internet arm, is also exposed. It has recently expanded across South Asia and the Middle East (moves that happened while Musk was close to Trump). With that relationship now soured, future deals could be at risk.

Bigger Trouble Ahead For US Tech

This feud isn’t just personal; it could hurt America’s innovation sector. If government contracts and subsidies disappear, it could slow down the rollout of EVs, robotaxis, and space tech.

Markets are rattled, and the uncertainty isn’t going away soon. For now, the Musk-Trump friendship seems over. And unlike in movies, there may be no happy reunion.