Elon Musk’s Catastrophic Blunder Wipes Out $152 Billion From Tesla in a Single Day—Wall Street Reels as Entire Business Empire Faces Collapse!

Elon Musk played with a knife and was “cut off”.

Last year, during the US presidential campaign, Elon Musk’s decision to “bet all hands” on Donald Trump made the press confused. But now, the way he “broke up” with the US president is even more confusing.

As a close ally of Mr. Trump, Musk’s moves certainly affect Tesla – the largest pillar of his business empire and also the manufacturer of one of the most expensive and recognizable items to American consumers: electric vehicles.

First, Musk turned his back on Tesla’s core customers — most of whom are Democratic voters living in coastal states — by publicly pouring money and influence into backing Trump back into the White House. Then it was his turn to publicly criticize the federal government, which is supporting his tech ambitions.

.

.

.

On May 30, 2025, while still serving as an advisor and leader of the Ministry of Government Efficiency under the Trump administration, Elon Musk suddenly announced his withdrawal to refocus on his companies.

The relationship between Musk and Trump has now broken down. In recent days, Musk has repeatedly attacked Trump’s domestic spending bill and the two sides have had a public confrontation on social media.

In response, Trump accused Musk of “Trump mania syndrome”, while Musk retorted: “If it wasn’t for me, Trump would have lost the election”. This seemingly unbelievable story is taking place between two of the world’s most powerful figures.

As a result, Tesla shares plunged 14% in just one day Thursday, blowing away about $152 billion in market value and costing Musk $34 billion in net worth, according to the Bloomberg Billionaires Index.

It is not difficult to notice that Tesla shareholders are disappointed in many directions.

First of all, Musk’s public confrontation with Mr. Trump could turn away from the Republican group of voters who had considered buying Tesla. This puts Tesla in a difficult position: Losing favor on both sides of the political spectrum in just a few months — a taboo for a consumer-oriented brand.

In addition, Tesla’s ambitions of full self-driving are heavily dependent on federal government approval. In the context of a fractured relationship with Mr. Trump, the possibility of being “greenlighted” for this technology becomes fragile. Musk’s other companies such as SpaceX, which relies on government contracts, are also not immune to risks.

“The easiest way to save the budget — billions of dollars — is to terminate the benefits and contracts with Elon Musk,” Trump wrote on Truth Social on Thursday. “I’m always surprised why the Biden administration hasn’t done that!”

The warning poses a serious threat to SpaceX, which relies on contracts from NASA and was recently selected by the FAA to upgrade its air traffic management infrastructure through the Starlink satellite network.

Experts say this is a good example of what a CEO should not do, especially the head of a consumer-oriented company.

“You have to want Trump to be happy on the playing field. You don’t want to be seen as an enemy by him,” warned veteran analyst Dan Ives from Wedbush Securities.

Bill George – the former CEO of Medtronic and now a lecturer at Harvard Business School – called the verbal altercation a “devastating farewell”.

“Never declare war on the President of the United States,” he said. “It’s going to take a lot of damage to your business.”