Suit yourself with popcorn — it’s showtime. The U.S. President vs. the world’s richest man — the fallout of the year has finally arrived.
“Sometimes you see two young children fighting like crazy,” Donald Trump once said in the Oval Office, referring to the conflict between Russia and Ukraine. But he could just as easily have been talking about himself.
The rift between U.S. President Donald Trump and billionaire tech entrepreneur Elon Musk has burst into the open, with both trading insults. Their feud escalated throughout Thursday on social media, hinting at a bitter end to what was once an unlikely alliance.
Their partnership began when Musk endorsed Trump last July following an assassination attempt in Pennsylvania. The Tesla boss reportedly funnelled $290 million into getting Trump back into the White House.
In a flurry of posts on X, Musk took credit for the sweeping Republican victory in last November's election, claiming he was the reason Trump got elected in the first place.
The showdown caught the attention of other high-profile figures, including Bill Ackman, who urged the two men to stop fighting and “make peace for the benefit of the country.”
After hours of sparring, Trump appeared to downplay the situation. Musk also seemed to acknowledge the need for reconciliation.
Within hours of the public fallout, Tesla stock plunged 14% in a single session, erasing a record $152 billion in market value.
The fiery exchange wiped $34 billion off Elon Musk’s net worth, which now stands at $335 billion. Still trailing is Meta’s Mark Zuckerberg, with $241 billion, holding steady as the second-richest person in the world.
The stock drop followed a 22% rally in May, despite Tesla’s weak sales numbers. Musk had recently stepped down from his role as head of Trump’s so-called Department of Government Efficiency, or DOGE.
Tesla shares are down nearly 18% this week as Musk continues to criticize the budget bill. So far this year, shares have fallen nearly 30% and are well off the December 18 high of $488.54.
The company is facing more fundamental problems, including plummeting EV sales in major European markets and a declining brand reputation in the West.
Additionally, Tesla is under pressure to finally launch its long-delayed, driverless ride-hailing service this month in Austin, Texas.
For now, all eyes are on the markets to see whether the prospect of a truce between Trump and Musk might spark a rebound.
