Elon Musk suffers major consequence of Donald Trump’s rant about ‘train wreck’ billionaire

Elon Musk may be facing a setback for his company Tesla as tensions with former ally Donald Trump escalate.

The two, once close, have had a dramatic falling out. Musk reportedly contributed $300 million to support Trump’s re-election, and had even been appointed—without Senate approval—to lead the Department of Government Efficiency (DOGE).

Trump had once strongly supported Musk and Tesla, but their relationship soured rapidly. Their public feud intensified after Musk announced plans to launch a new political movement, the “America Party,” aimed at disrupting the traditional Republican-Democrat system. However, it’s unclear if the party is officially registered.

Trump responded by criticizing Musk on Truth Social, saying the billionaire had become a “train wreck” over the past five weeks. This public spat appears to have shaken investor confidence in Tesla.

On July 7, Tesla’s stock dropped over 7% in pre-market trading, risking a $70 billion loss in company value and potentially slashing over $9 billion from Musk’s personal Tesla holdings.

Earlier this year, Musk’s ties to Trump already hurt Tesla’s public image, sparking consumer backlash and even arson attacks at dealerships, especially amid DOGE-driven cost cuts.

Their disagreements grew deeper over Trump’s $4.5 trillion “One Big Beautiful Bill,” which Musk opposed, calling it “disgusting.” After Musk resigned from his DOGE role in May, Trump claimed he was forced out and even threatened to deport Musk. Despite the conflict, Trump signed the tax bill into law on July 4