Once allies, they are now completely torn apart. The relationship between billionaire Elon Musk and President Trump has completely ruptured, evolving into an all-out confrontation. As the war of words escalated, the financial markets reacted, with Tesla's market value evaporating by $150 billion in a single day, dragging down the US stock market and the cryptocurrency market. Musk’s tweet storm triggered a political and financial earthquake that swept the world.
From Cooperation to Opposition: Conflict Fully Erupts
The catalyst for the conflict was Trump's proposal to significantly cut government contracts related to Musk. Trump stated on his social media platform: 'The simplest way to save billions in budget is to terminate Elon’s government subsidies and contracts.' Musk responded, not only threatening to retire the Dragon spacecraft immediately but also directly calling for Trump's impeachment on the X platform.
Musk accused Trump of being 'ungrateful' and suggested that Trump's refusal to publicly disclose files related to financier Epstein was because his own name was included. This accusation quickly sparked a huge uproar.
Mlion.ai's social sentiment tracking data showed that after Musk tweeted about 'impeachment,' the search volume for related keywords skyrocketed by 370% within 24 hours, with tweet interactions surpassing ten million, reflecting that public sentiment was instantly ignited.
Political Struggle Escalates: Contracts and Subsidies Become Weapons
Trump's counterattack was equally fierce; he accused Musk of opposing the new tax law because it reduced tax credits for electric vehicles, which would directly impact Tesla's profits. Trump stated, 'Elon is on the decline, I canceled his electric vehicle mandate, and he's gone mad!'
According to Bloomberg data, since 2000, SpaceX and Tesla have cumulatively received $22.5 billion in federal contracts and subsidies. Musk's business empire is closely tied to the government, and if these collaborations are terminated, the consequences could be unpredictable. Mlion.ai's financial data dashboard simultaneously monitored that Tesla's market value evaporated by $150 billion on that day, marking the largest single-day drop in history.
Ironically, just last Friday, Trump held a ceremony at the White House in honor of Musk, and now the two have come to blows.
Market Volatility: Stock Market and Cryptocurrency Both Decline
Musk's public conflict with Trump quickly affected the financial markets. Tesla's stock price plummeted by 18%, the Nasdaq weakened, and the overall US stock market came under pressure. Worse still, the sentiment spilled over into the cryptocurrency market, with Bitcoin briefly crashing by $3,000 and Ethereum dropping over 8%.
Mlion.ai's on-chain data analysis indicates that as a result of the incident, Bitcoin's on-chain activity dropped by 12% within 24 hours, and Ethereum saw a net outflow of $800 million. Panic spread, leading to a surge in market trading volume as funds fled high-risk assets.
On the prediction market Kalshi, the probability of Trump being impeached again quickly rose to 49%. Mlion.ai's sentiment engine captured that discussions about 'impeaching Trump' surged on social media, becoming the day's hottest global topic.
Is a new political party on the horizon?
In the face of dual blows from politics and business, Musk did not back down. He made significant statements on the X platform, proposing to form a new political party that 'truly represents the middle 80% of public opinion.' Mlion.ai's public sentiment monitoring shows that as of the time of writing, over 2.2 million netizens have participated in the vote, with more than 80% supporting Musk's establishment of a new party.
Meanwhile, former White House advisor Bannon openly called for an investigation into Musk's immigration status and personal behavior, even suggesting his deportation. The radical elements of Trump's camp seem to be heating up this conflict.
The White House was also in turmoil. Insiders revealed that presidential assistants held multiple emergency meetings that day to assess the potential chain reactions Musk's tweet could have on the government's image and policy advancement.
Summary
The confrontation between Musk and Trump is not only a personal feud between billionaires and a president but also a deep struggle over power, capital, and future directions. The financial market, tech circles, political circles, and even the cryptocurrency world are all caught up in this conflict.
In the midst of turbulent circumstances, accurately grasping risks and opportunities has become a mandatory lesson for investors. Relying on Mlion.ai's intelligent research platform to track on-chain capital flow, market sentiment changes, and major event dynamics in real-time may help you seize the initiative in the storm.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice!