The conflict caused a big dump of stocks related to its brand in less than 24 hours, with retail investors flocking in. No speech. No warning. Only losses.

A tax bill from the White House threatens to cut Tesla's electric vehicle subsidies, triggering this farce. Elon struck back. Trump's second term is coming to an end, but he has not backed down. The market reacted immediately.

Dogecoin fell by 10%. Destiny Tech100 Inc. (a fund hailed as a retail investor channel for SpaceX) experienced a big dump of 13%. Leverage bets surrounding the Elon empire plummeted by 25%. Even the Trump Media Technology Group was impacted. By the end of the trading day, anything related to the two had incurred losses.

Trump's tax plan has caused huge losses.
This sell-off is driven by panic rather than fundamentals. Peter Atwater, head of Financial Insyghts, said, "You could be an incredible beneficiary one moment and then be hit hard the next." Atwater warned that Elon’s intense trading is like a domino effect – once it starts to fall, it won’t stop.

Despite the turmoil in high-risk assets, traditional indexes were hardly affected. The S&P 500 rose 1.5% this week. The FANG index, excluding Tesla, hit a record high. After new employment data alleviated short-term recession worries, the yield on the 10-year U.S. Treasury soared by more than 10 basis points.

At the same time, the US dollar has fallen to its lowest point in nearly two years. But retail investors—those chasing dreams rather than profits—have suffered a heavy blow.