A public spat between Elon Musk and former President Donald Trump is rattling markets, leaving Tesla stock reeling and causing a sharp drop in Dogecoin's value.
🐶 Dogecoin Plunges Amid Political Fallout
Dogecoin—popularized by Musk’s longtime promotion—is down 6% in a single day, erasing approximately 12% of its value over the past week. The sharp decline followed Musk’s harsh criticism of Trump’s “Big Beautiful Bill,” which he dubbed a “disgusting abomination”—a fiscal move Musk says undermines his cost-cutting work at the Department of Government Efficiency (DOGE).
This public rebuke escalated the drama, with both men trading barbs across Musk’s X (formerly Twitter) and Trump’s Truth Social. As tensions rose, so did market anxiety—leading to significant sell-offs in Dogecoin.
🏛️ Fallout from the Trump–Musk Feud
The rift between Musk and Trump intensified rapidly:
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Trump reproached Musk for calling the tax-and-spending legislation “disgusting,” threatening to remove Tesla’s government contracts and even hinting at repercussions.
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Musk responded by challenging Trump’s political integrity and even briefly referencing the “Epstein files,” before deleting those posts.
Despite Musk withdrawing from his role as DOGE head of government efficiency earlier, his outspoken stance triggered a direct fallout—highlighting the unpredictable consequences of his political engagements.
📉 Tesla Stock and Market Sentiment Under Strain
Musk’s clash with Trump hasn’t just impacted crypto. Tesla shares plunged roughly 14% in one day, wiping out around $150 billion in market value. This drop reflects investor anxiety tied to Musk’s political entanglements and their potential impact on Tesla’s bottom line—especially considering threatened government action and waning brand appeal .
🧭 What's at Stake
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Dogecoin: Musk’s endorsement has historically influenced Dogecoin's value, making the recent drop a lesson in how political friction can unsettle crypto assets.
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Tesla: Potential contract losses and reputational damage are casting uncertainty over Tesla’s future performance .
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Musk–Trump Alliance: Once allies, the feud highlights how quickly the relationship between tech leaders and political figures can unravel, reshaping influence, power dynamics, and public perception .
For crypto traders, Tesla shareholders, and market watchers, this situation is a reminder: Musk's actions—especially when they enter the political arena—carry real financial ramifications. Investors are now watching closely to see if the feud ends or escalates further, and whether Trump's threats become more than words.
