Short Sellers Owe Elon a Thank You Card After Tesla’s $150B Wipeout

When the world’s richest man links up with the most powerful man on the planet (both with egos that could knock over a small moon) you expect fireworks. Maybe a few “misunderstandings.” A passive-aggressive subtweet or two. But what we got? Was unbelievable (and that’s saying something for these two guys).

After the 2024 election, Tesla stock soared because investors assumed Musk had just secured a VIP pass to the Oval Office. Trump, back in power, had his largest financial backer by his side and, for a moment, it looked like we were headed for a beautiful, tax-incentivized future. Instead, the bromance blew up similarly to Zach Bryan and that Brianna Chickenfry girl (Barstool celeb or something, not sure what’s with the name).

It started with whispers, policy disagreements, some pissy pants over a tax bill… but then the ufc sized gloves came off. Elon accused Trump of hiding the Epstein files because he’s in them (conspiracy theorists couldn’t dream this up). Trump fired back on Truth Social, saying the easiest way to save “billions and billions” in the federal budget was to axe Elon’s government contracts and subsidies. “I was always surprised Biden didn’t do it!” he added.

Musk’s response was “Go ahead, make my day,” followed by laughing emojis. Yes, this is how the two most powerful men in the world are handling disagreements over what was supposed to be a “big, beautiful tax bill” (I think they’re going to have to rename it).

The market did not find it funny. Tesla stock fell 14%, wiping out $150 billion in value and sending Elon’s personal net worth down by $34 billion. Short sellers, who’ve been waiting for this kind of Musk meltdown like I’ve been waiting for the last season of Stranger Things, cashed in to the tune of $4 billion. It was the second most profitable Tesla short ever… behind only that time in 2020 when the company got snubbed by the S&P 500.

Trump even floated stripping the EV tax credit (worth $7,500 per vehicle) which analysts say could cost Tesla $1.2 billion annually. Add in the possible loss of $2 billion in regulatory credit sales and, well… let’s just say Tesla’s “Full Self-Driving” dreams might be getting delayed a few more years. The political shockwave also shook SpaceX, which has racked up $21 billion+ in NASA and Defense contracts. Not something you want to put at risk because your favorite Twitter button is “Send Tweet.” Then, in a surprising twist, Musk grew a brain. After an X user with 200 followers suggested maybe everyone should just chill, Elon responded: “Good advice.” He even reversed a vow to decommission the Dragon spacecraft, which he had publicly offered to do just hours earlier.

Calls for peace came fast: Bill Ackman asked them to kiss and make up. Speaker Mike Johnson told them not to make it personal. And somewhere, a JPMorgan analyst was just trying to finish a spreadsheet before the next tweet tanked the stock another 10%. The irony is that just last week, Trump was still throwing Musk parties in the Oval Office. And now Elon’s calling for impeachment, accusing him of Epstein coverups, and saying Trump wouldn’t have won without him (as Michael Scott once famously said “how the turntables.”)

Did anyone see this exact disaster coming? No. Did we all know something insane would happen eventually? Absolutely. And if this is the “cooling-off period,” I can’t wait to see what happens when things heat back up.

Stock.News has positions in Tesla.