On June 5, local time, a game that should have been played in the shadows was laid bare on the X platform by both Musk and Trump. From 'ungrateful' to 'crazy,' this verbal battle not only shattered the alliance fantasy in the tech circle but also quickly spread to the nerve endings of the capital market.

1. Where does the gunpowder smell come from?

The tax reform bill previously passed by the House became the flashpoint, with Musk directly calling it a 'deficit bomb' and angrily criticizing its unfriendly terms towards electric vehicles and photovoltaics—having once benefited from renewable energy subsidies, he has now become an opponent. The Trump camp accused Musk of 'biting the hand that fed him' and emphasized that he never expected his electoral support.

2. Musk unleashes powerful moves, Trump responds angrily

  • Musk not only fired shots at the bill but also dug up Trump's tweets from a decade ago about reducing the deficit, mocking him for 'turning traitor.'

  • After the introduction of the Beautiful Legislation, it is expected to add $2.5 trillion to the federal deficit!

  • The little money saved by the DOGE department once led by Musk is simply a joke! Everything he did in the past is like a clown 🤡

  • He even initiated a national vote on X to establish a new political party representing the 'middle 80% of Americans.'

  • Then came the bombshell: Trump suppressed the Epstein case files because 'he was involved.'

  • Trump threatened to cut SpaceX's government contracts and subsidies, claiming Musk is 'crazy' and stated 'it was time to turn against him.'

  • 3. The impact is profound

Tesla's stock price has plummeted continuously, with a market value evaporating by nearly $200 billion, setting a record for the largest single-day drop in history;

  • This dragged down technology stocks, and the crypto market also suffered collateral damage: Ethereum fell over 8%, Bitcoin dropped more than $3,000 in a single day;

  • Trump's TMTG fell 8%, while on the forecasting platform Kalshi, the probability of Trump being impeached again rose to 49%;

  • On the X platform, Musk's proposal to create a new party has garnered over 2.2 million votes, with more than 80% in support;

  • Reports from the White House indicate that multiple closed-door meetings have been held regarding Musk's remarks, and some senior Republicans have begun to distance themselves from Musk.

  • 4. Are U.S. tech-political business relations entering a cold winter?


This is a complete rupture between a 'super billionaire' and a 'super political brand,' as well as a division and reconstruction between old and new Republicans.

In a polarized American society, Musk is trying to challenge traditional political iron laws with the language of tech elites; meanwhile, Trump still relies on traditional grassroots mobilization to shape his influence. The confrontation between the two is no longer just 'Silicon Valley vs. Washington' but may become a significant force in future elections.

This time, Musk not only said 'no' to Trump but also seems to have challenged the entire old political system. Understanding human nature and power amid market fluctuations is the real world we live in.

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