Elon Musk suffers major consequence of Donald Trump’s rant about ‘train wreck’ billionaire
Elon Musk’s Tesla may suffer another setback as his feud with Donald Trump escalates. The billionaire, who once enjoyed Trump’s endorsement, now faces backlash after announcing plans to launch a new political party, the “America Party,” challenging the two-party system.
Trump responded harshly on Truth Social, calling Musk “off the rails” and a “train wreck.” The public spat has rattled investors, with Tesla shares dropping over 7% in pre-market trading, risking a $70 billion market value loss.
Musk’s personal stake in Tesla could also lose over $9 billion if the decline continues. Earlier this year, his support for Trump already alienated some customers, even leading to arson attacks on Tesla dealerships amid government efficiency cuts.
The rift deepened over Trump’s “One Big Beautiful Bill,” a $4.5 trillion tax cut extension favoring wealthy Americans and businesses. Musk, who co-led the Department of Government Efficiency (DOGE), criticized the bill before stepping down in May.
Trump later claimed Musk was “asked to leave” DOGE, calling his behavior “disgusting” and even threatening deportation. Musk also accused Trump of ties to Jeffrey Epstein, further straining their relationship.
Despite the feud, Trump’s tax bill passed and was signed into law on July 4. Meanwhile, Musk’s political ambitions remain uncertain, with no confirmation if his new party is officially registered.
The ongoing conflict raises concerns about Tesla’s stability, as Musk’s polarizing actions continue to impact both his businesses and political ventures. Investors and consumers alike are watching closely.
