After "Tema" tore his face, the market smelled blood and began to "sell everything".

Market data shows that Tesla's stock price plummeted by 14.3%, and Musk's personal wealth shrank by nearly $20 billion; And Trump's Media Technology Group (Trump Media & Technology Group) shares slipped 8%, wiping out nearly $1 billion from its personal meme market value.

Tesla's market value plunged, and Dogecoin followed the "accompaniment"

Musk Trump's "war of words" has pulled Tesla into the water. Last week, Tesla's market value shrank by $152.3 billion in a single day, which is the largest one-day decline in history! Since Musk announced his resignation from the White House, Tesla's market value has accumulated losses of more than $200 billion. It can be said that the market reacted very strongly to this move.

In the options market, short bets are at an all-time high. According to Dow Jones market data, about 4.01 million Tesla put options changed hands, a figure that not only broke the record at the end of 2022, but also more than four times the usual trading volume. It seems that everyone thinks that Tesla's stock price will continue to fall in the short term.

Piper Danny, Head of Options at Sandler Kirsch points out that if you take a closer look at Tesla's fundamentals, you'll see that sales haven't been good all the time. If government support weakens or even turns into headwinds, how much will Tesla's valuation be affected? This concern has undoubtedly exacerbated the pessimism of the market.

However, some people think that this is a good opportunity to buy the bottom. Tesla's call options trading was also unusually active, with more than 3.3 million contracts traded in a single day, the highest since April 25, the data showed. As a result, Tesla is second only to the SPDR S&P 500 ETF is the second largest option trading target. It seems that investors are also divided at this time, some see risks, others see opportunities.

At the same time, Dogecoin, which Musk once called "the people's cryptocurrency", was not spared. On Thursday, Dogecoin plunged 10%, bringing its weekly decline to 22%. As a meme coin driven purely by emotions and celebrity effects, Dogecoin is extremely sensitive to Musk's attitude.

Previously, whenever Tesla announced that it would accept Dogecoin as a payment method, the price of Dogecoin would skyrocket; And when Musk replaced the X logo with a Shiba Inu image, the price soared by more than 30%. But now, with Musk's break with Trump, investor confidence has collapsed, and those who once bought Dogecoin like crazy are now paying for it.

Trump's companies are also "lying down"

Trump was also "hurt" in this turmoil. That's right, the former president hasn't been immune to the turmoil caused by Musk recently.

Trump's Media Technology Group (Truth Social's parent company) plunged 8%. This drop doesn't matter, it directly shrank his personal wealth by about $202 million. To make matters worse, the Meme coin he personally endorsed, $trump, also fell by nearly 10% in one day. As soon as this wave of market came out, it was said that the potential loss was as high as 900 million US dollars.

Investor confidence was shaken, and Wall Street began to decline

Musk's political stance and controversial behavior have also made some consumers resistant to the brand. This, coupled with Trump's recent threats, could directly affect the government subsidies and contracts that Tesla relies on, further squeezing profit margins.

Adam Sarhan: Uncertainty breeds panic

50 Adam, CEO of Park Investments "Obviously, Musk and Trump are no longer of the same mind," Sarhan believes. We don't know what the consequences will be, which is why everyone is selling stocks. There will be no definitive solution to this state of affairs. If the situation escalates, Trump may win in the end, and the impact on Tesla's stock price is not yet known. I think it does have the potential to hurt Tesla's bottom line. ”

To put it simply, the current situation is too uncertain, and everyone would rather withdraw first and have a look.

Dave Mazza: Robotape's dreams have been thwarted

Roundhill Dave, CEO of Financial Mazza also expressed pessimism: "Clearly bearish in the short term. This conflict has added unnecessary complexity to Tesla. Because Robotaxi is coming, people ignore the problem of car sales and are willing to put a long-term constraint on it. Now, if Robotaxi is targeted, and Musk himself is targeted, the market's 'dream premium' for the company will shrink significantly, as evidenced by today's decline. ”

In other words, the market's optimistic expectations are being hit by reality, especially those with rosy visions for the future.

And finally, Wayne Kaufman hit the nail on the head: "If Tesla really had a huge intrinsic value, the stock price wouldn't collapse like this." It was never traded on fundamentals. What this means is that Tesla's consistently high valuation is based more on Musk's charisma and vision for the future than on actual financial performance.