Elon Musk and Donald Trump are currently in a public feud, which is hurting Tesla’s stock. Tesla’s shares have dropped by 12%, leading Musk to lose $15.8 billion. This fallout might end up costing more than Bill Gates’ divorce. Both men have been active on social media about the issue. Musk expressed disappointment in Trump and asked him to step back, also wanting the electric vehicle (EV) mandate removed. In response, Trump suggested cutting government subsidies for Musk, expressing his surprise at President Biden’s lack of action. This ongoing situation has grabbed attention, especially with concerns about Tesla’s value. People are looking ahead to the June 12 launch of Tesla’s robotaxi, but there might be regulatory hurdles if the feud continues. Comparisons are being made to Gates’ divorce. Melinda Gates received $76 billion after a long marriage, while Musk’s connection to Trump is brief but significant. For the costs of this conflict to surpass Gates’ divorce, Tesla stocks would need to drop to $226, which is possible. Gates has also mentioned he holds a short position on Tesla. The feud between Musk and Trump is adding pressure to Tesla’s unstable share price. With a 12% drop, nearly $16 billion has vanished from Musk’s net worth. The fallout is affecting shareholder confidence, and the personal clash is spilling into the business world at a time when markets are sensitive to political influences. What we’re seeing is not just a personality clash; it’s an exchange with serious effects. Musk has warned Trump to stay out of Tesla’s business, especially regarding the EV policy. Trump responded by questioning Musk’s government support and criticizing the current administration for not being more proactive. This situation creates uncertainty ahead of Tesla’s crucial robotaxi launch on June 12. While this event is highly anticipated, potential regulatory challenges could complicate things. The long-term market impact will depend less on the announcement itself and more on whether regulatory approvals stay on track, which isn’t guaranteed right now. Traders need to consider the short-term pressure on Tesla’s options against how the stock is currently priced. Sentiment appears to be weakening, as prices for weekly puts have gone up, suggesting fear of a further drop. If the stock price falls more, particularly to $226, a significant reassessment could occur. Although this may seem far off, it could happen if market sentiment continues to decline. Gates’ previous negative comments about Tesla are being revisited, especially since they seem accurate considering recent market movements. His public short position has reinforced doubts about Tesla’s previous valuation in a climate that is becoming more politically scrutinized and focused on Musk’s behavior. It’s crucial to keep an eye on both macroeconomic trends and political developments. As we move forward, option expirations will create short windows of opportunity, but they require careful handling. The reaction around the robotaxi announcement will serve as a barometer. If the launch fails to impress or faces legal risks, bearish trading could pick up speed. We are closely monitoring gamma exposure. Right now, hedging appears manageable, but if Tesla stays below key support levels in the $230-$240 range, there could be increased downward pressure, causing sharp swings in prices. This isn’t just theoretical; past events show how quickly market liquidity can vanish when sentiment is fragile and automated trading takes over. In a market where personal dramas draw as much attention as products, the consequences are seeping into areas that used to be safe from such turmoil. For now, stay alert to news developments and adjust exposure as needed.

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