Core Points - The collaboration between Tesla CEO Elon Musk and Republican candidate Donald Trump during the 2024 U.S. presidential election marked a significant political-business alliance, with Musk donating nearly $300 million to Trump's campaign and actively supporting him in key swing states [1] - Tensions escalated between Musk and Trump following the passage of a controversial tax reform bill, leading to public attacks and significant stock market impacts for Tesla and SpaceX [2][3] - The fallout from their partnership highlights structural contradictions in their interests, power dynamics, and ideological conflicts, particularly regarding fiscal policies and government spending [5][6][7] Group 1: Financial Impact - Tesla's stock plummeted by 14.26% on June 5, 2025, resulting in a market value loss exceeding $150 billion, marking the largest single-day drop in its history [3] - SpaceX's stock also fell by 9.3%, with its $4 billion collaboration with NASA facing potential suspension due to the escalating tensions [3] Group 2: Political Dynamics - The Republican Party experienced internal divisions, with some members advocating for Musk's fiscal conservatism, while Democrats criticized Trump's unsustainable policies [4] - Musk's initiative to form a centrist political party garnered over 3 million support votes, indicating his significant political influence despite the breakdown of his collaboration with Trump [4] Group 3: Industry Changes - If Trump follows through on threats to terminate contracts, NASA may lose its only reliable manned spaceflight capability, potentially relying on Russian spacecraft for International Space Station operations [9] - The cancellation of electric vehicle consumer tax credits is projected to reduce Tesla's 2025 sales by 120,000 units, allowing competitors like BYD and Ford to capture market share [10] - Musk's political endeavors may have failed, but his centrist movement could lead to the emergence of new political forces, while Trump must repair relations with tech capital to maintain voter support [11]