Behind Tesla's 14% Plunge: Tracing How Musk and Trump Went from Honeymoon to Rift

Due to disagreements and public exchanges between Musk and Trump over proposed tax legislation, on June 5, $Tesla(TSLA.US)'s stock price plummeted 14%, wiping out $153 billion in market value, setting a record for the largest single-day drop. According to S3 Partners, short sellers made $4 billion in profits during this decline.

Now, the apparent "bromance" between Musk and Trump has officially ended. Let's take a look at how the relationship between Musk and Trump went from a honeymoon to a breakup:

Before 2024: Distance and Criticism

Musk once supported the Democrats (Clinton, Biden).
Criticized Trump's first term and resigned from the advisory committee over the withdrawal from the Paris Agreement.
2022: Trump called Musk a "bullshit artist," and Musk retaliated by saying Trump was "too old to run."

July 2024: Major Turning Point - Assassination Attempt and Massive Funding

After Trump survived an assassination attempt, Musk publicly supported him.
Musk established a super PAC and invested nearly $300 million to support Trump, becoming the largest Republican donor.

October-November 2024: Deep Ties and Election Victory

Musk actively campaigned, calling himself "Dark MAGA" and predicting that a Trump loss would be the "last election."
Stayed at Trump's Mar-a-Lago on election night.
Trump praised Musk in his victory speech: "A star is born—Elon!"

Late 2024-Early 2025: Power Collaboration

Trump appointed Musk to co-lead the "Department of Government Efficiency (DOGE)," focusing on slashing federal spending and agencies.

January 2025: Musk became an unpaid White House advisor and the de facto operator of DOGE (an unofficial department).

February 2025: Honeymoon and Early Cracks

Both defended DOGE's radical reforms.
Trump promised to avoid conflicts of interest involving Musk.
At a cabinet meeting, Trump laughed off questions about Musk causing dissatisfaction.
End of the month: Trump publicly restrained Musk's power, emphasizing that layoff authority belonged to cabinet members.

May 2025: Parting Ways

Musk left his position after his term ended, receiving high praise from Trump.
Musk immediately criticized Trump's "Big and Beautiful Act," calling it deficit-increasing and undermining DOGE's achievements.

June 5, 2025: Public Breakup - War of Words

Trump attacked on Truth Social:

Called Musk "increasingly difficult" and claimed he had Musk removed.
Announced the cancellation of the electric vehicle mandate (directly targeting Tesla).
Claimed Musk had "gone crazy" as a result.

Musk retaliated fiercely on X:

Declared, "Without me, Trump would have lost the election."
Simply reposted and replied "Agree" to a post calling for Trump's impeachment.