SkyBridge Capital founder Anthony Scaramucci stated on Thursday that President Donald Trump‘s political influence has begun to decline, coinciding with a $152 billion market capitalization loss for Tesla Inc. (NASDAQ:TSLA) amid an escalating public feud between Trump and CEO Elon Musk.
What Happened: “People aren’t realizing yet but today is the day that trump as a political asset has started decaying. Mark the day,” Scaramucci wrote on X, adding “Elon is right about Trump.”
The Bitcoin (CRYPTO: BTC) advocate’s comments came as Tesla suffered its second-largest percentage drop in over a year, falling 14.3% to $284.70.
The unprecedented market rout followed Trump’s public criticism of Musk over the SpaceX CEO’s opposition to Trump’s “Big Beautiful Bill” spending legislation. Tesla’s decline marked the company’s largest single-day market cap loss in history, pushing it out of the $1 trillion valuation club.
Musk had labeled the spending bill “a disgusting abomination” on social media, warning that Trump’s proposed tariffs “will cause a recession in the second half” of 2025. The Tesla CEO criticized Congress for “spending America into bankruptcy” while questioning the bill’s fiscal impact on national debt.
Why It Matters: Trump responded aggressively on Truth Social, stating he “asked Musk to leave the White House as he was wearing thin.” The president suggested terminating government subsidies and contracts with Musk’s companies, which the Washington Post analysis estimates have received at least $38 billion in public funding.
The feud escalated when Musk referenced Trump’s alleged connection to the Jeffrey Epstein files and proposed creating a third political party representing “the 80% in the middle.”
The fallout reverberated through Congress, with Sen. Chuck Schumer (D-N.Y.) posting “Siri, play ‘Bad Blood’” on X. House Speaker Mike Johnson called Musk’s attacks “not helpful” while defending the legislation as including “the largest mandatory spending cut to the federal government in history.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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