Overturning US stocks, Bitcoin plummeted, Musk and Trump "screamed" the financial tsunami?

Author: Fairy, ChainCatcher

Edited by: TB, ChainCatcher

Note: The content of this article is compiled based on the content of the dispute between Musk and Trump, and is not strictly in the timeline order.

Musk originally wanted to be the "Yang Jinshui" of the United States, but found that he was "Gao Hanwen".

Last night, Trump and Musk collided head-on on social media, and their former allies broke up completely. Musk even dug out Trump's old tweet 12 years ago as a "weapon", with both sides sharp words and pointing directly to the key points.

And when the sun rises, the market is already bloody: Tesla's market value evaporated by US$153 billion, setting the largest single-day decline in history. Bitcoin fell 4%, Dogecoin fell 10%. The highly leveraged James Wynn continues to be liquidated and currently loses about US$29 million in liquidation.

Musk enters North Korea, Musk leaves

The two men's honeymoon began in the 2024 election. Musk spent $290 million to stand up for Trump, and even visited swing states in person to canvass and build momentum for him. After Trump won the election, he appointed him as the head of the "Director of Government Efficiency" (DOGE), authorizing him to reform federal agencies and reduce fiscal spending. At that moment, Musk seemed to have really become the "Yang Jinshui" of the United States.

But the sugar coating of power melted quickly. In April 2025, Musk and White House Chief of Staff Becent had severe differences on tariff policies, and fierce quarrel broke out at the door of the White House, almost taking action. In the end, Trump adopted Becente's appointment proposal, which may be the first alarm for Musk and Trump's allies toward the rift.

A month later, Musk said he was about to leave the Trump administration and no longer continues to serve as a special government employee, and the DOGE team will continue to work across the government. The inspiration for the quarrel seemed to lay the groundwork here.

A bill triggers conflict

In May 2025, the Republican-led House of Representatives passed a tax and expenditure bill that Trump calls “big and beautiful.” The bill is expected to soar the U.S. budget deficit to $2.5 trillion, while ending tax credits of up to $7,500 for several electric vehicles, including Tesla, early, and subsidies that were originally scheduled to be cancelled in 2032 were ended seven years ahead of schedule. JPMorgan analysts estimate that the move will evaporate Tesla's annual profit by about $1.2 billion.

On June 4, Musk publicly opposed the bill, calling it "disgusting" and began privately lobbying Republican lawmakers in an attempt to prevent the president from signing the bill. He also sent a direct letter to House Speaker Mike Johnson, calling for the retention of the electric vehicle subsidy clause.

The first round of verbal war broke out.

Trump expressed "disappointment" in his public speech, saying that Musk actually "fully understands the content of the bill" but was dissatisfied with the "revoking the mandatory sales regulations for electric vehicles."

Musk responded: "The Trump administration retained provisions to cut electric vehicles and photovoltaic incentives in the draft, but did not move any subsidies for oil and gas. And the bill has never been shown once, it was quickly passed late at night, and almost no one in Congress can read it."

Musk also satirized Trump's old tweets criticizing the raising of debt ceiling in 2013. Trump once said in 2013: "I can't believe that the Republican Party wants to raise the debt ceiling. I am a Republican, and I feel very ashamed!" Musk quoted the remarks and said: "The most wise quote."

The second round of verbal battle: From "election and grace" to "threat

of supply cut off"

The dispute quickly heated up, and Musk publicly accused Trump of being "ungrateful" on the X platform, saying that if he had not supported him, Trump would not have won the election at all. "Without me, Trump would lose the election. Democrats will control the House, and Republican seats in the Senate will also drop from 51 to 49."

Trump is not to be outdone: "I can win Pennsylvania even without Musk." He then posted on Truth Social that the most direct way to cut the fiscal deficit is to terminate government subsidies and contracts issued to Musk and his company, "this will save billions of dollars. I have always been surprised that Biden did not do this!"

Musk immediately responded strongly: "In view of President Trump's statement on the cancellation of our administration's contract, SpaceX will immediately start to retire the Dragon spacecraft." It is reported that the current manned space activities in the United States rely heavily on the "Dragon" spacecraft of the US Space Exploration Technology Company.

At this point, the war of verbal conflict has escalated from verbal conflict to a political and technological crisis.

The third round of verbal battle: Musk "dropped bombs" directly targeting

Trump's "Loli Island" scandal

The war has burned Trump's "sensitive past". Musk publicly revealed: "Trump appears in Epstein's documents. This is the real reason why these documents have not been released for a long time. I wish you a wonderful day, DJT!"

This allegation pushes the contradiction to a climax. Jeffrey Epstein, who was named, has attracted widespread attention during his lifetime for sexual transactions and sexual assault cases involving minors. After being arrested in 2019, he committed suicide in prison, leaving behind a large number of unsolved mysteries. Trump once said during his campaign that he would release a list of big names involved in "Loli Island", which was accused of including some well-known Democrats or supporters.

Musk did not stop there and retweeted a tweet calling for "impeachment of Trump and taking over by JD Vance." Still launching a vote on X "Is it time to build a new party in the United States that truly represents 80% of the middle?" Trump responded that he didn't care: "I don't mind Elon Musk's opposition to me, but he should have done that a few months ago."

The storm has not stopped

The storm continues to ferment, and fierce remarks continue to emerge. Steve Bannon, a former senior Trump adviser, publicly called for a thorough investigation of Musk and even "deported". "I firmly believe that he is an illegal immigrant and should be repatriated immediately. He is suspected of taking drugs and all government contracts related to him should be cancelled," he said in an interview with the New York Times.

At the same time, the White House also acted quickly. According to Kim Shi, people familiar with the matter revealed that senior White House staff had held several closed-door meetings today to urgently assess the impact of Musk's tweets.

Financial tycoon Bill Ackman also made a statement: "Musk and Trump will benefit both, and if they are separated, they will suffer two losses." Musk responded concisely: "You are right." This interaction is seen by the market as a signal that the relationship between the two may be temporarily reconciled.

However, the plot direction is still full of variables. KOL Bruce J of the crypto circle analyzed: "I predict that there may be 'peacemakers' intervention in the future; the big beautiful bill will still pass, but some expenditure will be reduced to give all parties a step; Trump and Musk will stop the war in the short term, but their personal relationships will be completely broken."

Whether this storm is ultimately a temporary "reconciliation" or a comprehensive showdown between power and capital, this dispute has long exceeded personal grudges and is affecting the political nerves and market structure. Some netizens joked with a word: "Neither of these two men did what adult men should do - control their emotions and keep their mouths in check."