Crypto Dips, Tesla Tumbles 14% As Trump-Musk Drama Unfolds

Musk’s fight with Trump over politics has made the crypto market more unstable, causing investors to feel unsure again.

A public fight between Donald Trump and Elon Musk has shaken the financial markets, causing Tesla’s stock to fall and making investors pull back from risky assets like crypto.

The conflict peaked on June 5 during a White House meeting with the German chancellor. There, Trump openly showed he was unhappy with Musk, who used to be one of his close advisers. Trump said, “I’m very disappointed in Elon. I’ve helped him a lot.”

Musk quickly replied. In a sharp post on X, he said Trump was ungrateful and added, “Without me, Trump would have lost the election.” This marked a big public breakdown of their strong partnership, which had grown during Trump’s second term.

Musk vs Trump: Tensions Shake Markets

Things got worse when Musk replied “Yes” to a post on X that said Trump should be impeached. This comment quickly got a lot of attention, even though removing Trump from office isn’t likely, since Republicans control the House and the Senate.

Markets reacted fast to the situation. Bitcoin dropped to $100,783 on Thursday but later went above $102,700. In the last 24 hours, more than $324 million worth of Bitcoin long positions were wiped out, according to Coinglass. The overall crypto market also fell by nearly 5% during that time.

The $TRUMP meme coin, which had climbed during the highs of their collabs, fell by 10%. Experts say Musk’s influence in the crypto space, combined with the political uncertainty, has added new uncertainty to a market that was already unstable.

Tesla Takes a Hit as Conflict With Trump Jeopardises Government Backing

Tesla’s shares dropped even more. The stock ended 14% lower on Thursday and has fallen 16% since Musk started criticising Trump’s domestic policy bill last week.

Tesla’s stock is now about 33% lower than it was on Inauguration Day. This shows more people worry that the fight could risk billions of dollars in government help and contracts that are very important for Tesla’s future.

Until recently, Musk was an important informal adviser to Trump. He helped with big policy decisions and often spoke for the government in other countries.

Musk’s quick exit from that close group has created a gap in tech-related plans. Now, markets are unsure how the government will handle important issues like electric cars and space projects.

Making things more uncertain, Musk has suggested he might start a new political movement. This idea, plus the chance that rules could change or money could be taken away, has made investors prepare for a tougher time. This affects not only Tesla but also the wider tech and crypto markets that often follow Musk’s actions.

The fight is more than just politics. It’s a rare situation where personal conflict is affecting the basic workings of the market. Right now, both crypto and Tesla are stuck in the middle of this struggle.

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