Costly breakup

It was a brutal session for some of America’s most attention-grabbing names.

Tesla dropped 14%, Trump Media & Technology Group (DJT) fell 8%, and TrumpCoin slid 9%. The backdrop? A heated clash between Elon Musk and Donald Trump, with both now exchanging personal attacks. What began as a policy disagreement over the “Big Beautiful Bill” has quickly escalated.

Markets also have fundamental concerns. As reported by Dow Jones, Tesla's sales volumes are under pressure following the proposed end of the $7,500 U.S. EV tax credit in 2025 — seven years earlier than planned. President Trump has further threatened to cancel all of Musk’s government contracts and subsidies, a move that could significantly impact SpaceX.

The chart below tells the story: DJT and TSLA have moved in a highly correlated pattern in recent months — now they’re both tumbling fast.

At ECP, we don’t invest in hype. We focus on companies with durable, undervalued earning power — not those dominated by Twitter drama and headline risk.