⚡ Market Impact So Far
Tesla’s stock plunged ~14% after Musk branded a Trump-backed $2.4 trillion “Big Beautiful Bill” a “disgusting abomination” and publicly accused Trump of being "in the Epstein files"—triangulating political, reputational, and financial risk in one dramatic moment .
That equated to roughly USD 140–150 billion wiped off Tesla’s market value, and similarly triggered a pullback across equities linked to Musk’s ecosystem .
Investors also reacted on a broader level: the S&P 500 and Nasdaq, which had been climbing, reversed early-day gains amid the Musk–Trump feud .
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Why Political-Business Feuds Shake Markets
1. Policy and Subsidy Risks
A public clash like this throws future regulations and subsidies into doubt. Trump explicitly threatened revoking EV credits and Musk’s government contracts, sowing fear over Tesla’s financial environment .
2. Reputation Risk
Musk’s bold allegation linking Trump to Epstein carries reputational fallout. Investors tend to flee when companies anchor to scandal that might spark legal or consumer backlash.
3. Increased Volatility
Social media flaring between two high-profile figures adds unpredictability. Traders hate uncertainty—and political drama is its purest form.
4. Exposure to Side-Effects
Tesla has previously acknowledged that political sentiment and trade policy tied to Musk’s profile negatively affected its earnings . Today’s dynamics intensify that concern.
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The Road Ahead: Confidence Outlook
Short‑term: Expect continued volatility in Tesla and politically sensitive stocks—particularly tied to EVs, defense, and tech—while #TrumpVsMusk dominates headlines.
Mid‑term: Resolution or cooling of the feud could stabilize markets (as seen with a slight pre‑market rebound after rumors of a Touchtone call) .
Long‑term: If Musk and Trump don’t mend fences, the persistent political entanglement could hinder future policy clarity—attractive to conservative investors—and keep risk premiums elevated.
