In a stunning turn of events, the relationship between former allies Donald Trump and Elon Musk has fractured, sending ripples through the business and political landscapes. The public spat, which began with veiled criticisms, has now escalated into open animosity, with Musk publicly calling for Trump’s impeachment.
The falling out, seemingly over policy disagreements, marks a dramatic shift in their previously publicized alignment. On Monday, in response to a prompt on the social media platform “X”, Musk stated, “Yes” when asked if he supported the impeachment of Donald Trump.
Musk has also reportedly stated that Trump would not have won the presidency without his assistance. This public distancing and direct criticism of Trump is in stark contrast to Musk’s earlier endorsements and support, creating uncertainty regarding the future dynamics between the prominent business mogul and the former president.
The catalyst for this apparent rift appears to be the proposed “Big and Beautiful” bill, which Musk has vehemently criticized on social media. He’s asserted that the bill is fiscally irresponsible and will exacerbate the federal deficit. Musk went as far as threatening to work against Republican lawmakers who back the bill; his stance on the bill indicates a significant evolution in his perspective of the former president and the policies put forward by his administration.
Despite a 22% rally in Tesla’s stock in May, shares of the electric vehicle manufacturer have been on a downward trend since Musk’s departure from the Department of Government Efficiency (DOGE) and the public exposure of his disputes with Trump.
Tesla’s stock is down over 20% year-to-date, a significant drop from its December 18th, 2024 high of $488.54. Moreover, Tesla’s facing deeper troubles, with significant sales drops in key European markets. Concurrently, its brand image is enduring reputational challenges in Western markets.
From late 2024, when Musk publicly supported Trump, to the present day, the relationship deteriorated due to the “Big and Beautiful” bill. The public fallout has shaken the financial markets.
Tesla stock has experienced a massive drop, costing it roughly 100 billion dollars in market value following the public separation, announced on June 5th, between Donald Trump and Tesla CEO Elon Musk.
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