Summary
Musk vs. Trump escalated fast: insults, contract threats, and Epstein accusations shook markets. Tesla plunged 18%, dragging indexes down. Investors are watching closely as politics and Wall Street collide.
Market Recap
Market Movers
- 📈 US NON-FARM PAYROLL REPORT 8:30AM ET: Jun 6, 2025
📚 Deep Dive 📚
Musk vs. Trump: From Allies to Adversaries
Once close allies, Elon Musk and President Trump are now embroiled in a bitter dispute over a GOP-backed tax and spending bill. Musk criticized the legislation as a "disgusting abomination," arguing it would increase the federal deficit and eliminate electric vehicle (EV) tax credits . Trump responded by labeling Musk as "crazy" and threatened to revoke government contracts and subsidies benefiting Musk's companies .
What started as a policy disagreement possibly over EV tax credits (as Trump puts it and about the deficit as Elon says it) has spiraled into a political firestorm. Trump claimed he “would’ve won Pennsylvania without Elon,” prompting Musk to clap back that Trump “wouldn’t have won the election without him.” The feud escalated with Trump threatening to slash billions in federal contracts tied to Musk’s companies—only for Elon to drop a bombshell, implying Trump is named in the Epstein files. Tesla stock plunged as markets reacted to the chaos.
Market Impact: Tesla's Stock Plummets
The Musk-Trump feud has rattled investors, leading to a sharp decline in Tesla's stock. Shares fell by as much as 18% on Thursday, marking the steepest drop in four years and erasing approximately $100 billion in market value . The broader market also felt the impact, with the Nasdaq Composite Index slipping 0.7% .
Even Palantir (PLTR) tanked -7% today.
Analysts attribute the sell-off to concerns over potential regulatory obstacles and the loss of federal incentives for EVs. Additionally, Tesla's disappointing May sales figures in several European markets, where overall EV sales rose, have compounded investor anxiety.
X and Social Media Reacts:
Political Fallout and Future Implications
Musk's departure from his role in the Trump administration's Department of Government Efficiency (DOGE) and his subsequent criticism of the administration's policies have strained their relationship. The feud underscores the risks of intertwining business interests with political alliances.
As the situation unfolds, investors and political observers alike will be watching closely to see how this high-profile clash influences both Tesla's trajectory and the broader political landscape.
📊 How Did the Market Perform Today?
Nasdaq Composite: 19,298.45 (−0.8%)
S&P 500: 5,939.30 (−0.5%)
Dow Jones Industrial Average: 42,319.74 (−0.3%)
The markets experienced modest declines, with the Nasdaq Composite falling 0.8%, the S&P 500 decreasing by 0.5%, and the Dow Jones Industrial Average slipping 0.3%. All the losses came after the Elon-Trump dispute began during lunch time.
🚀 What Did GAR Do Today
Futures:
We stayed on the sidelines through today’s choppy action—an intentional and disciplined move. No forced trades, no unnecessary risk. Sometimes, sitting tight is the best play, and today was one of those days.
Options:
The options team executed excellent timing on our AMZN calls (expiring tomorrow), locking in a strong +40% gain before the market pulled back—huge comeback and well-managed exit. We're still holding PLTR calls into tomorrow (likely a write-off unless the NFP report delivers a surprise rally and we soar), alongside our swing positions in HIMS and a fresh entry in NVDA calls today. Eyes are on Friday’s catalysts!
Final Take:
I think the stock drop is a little overblown technically (especially the rest of the market), but we cannot ignore the fact that Trump possibly cutting contracts with Elon is a real risk. That could affect future revenue streams for Tesla, SpaceX, and others. This means further research is needed. Let’s see where the chips fall. Patience is key! - Anthony A.