The rift between President Donald Trump and Tesla chief Elon Musk has captivated the world as a political drama, but it has also become a Wall Street spectacle, highlighting the risk to equity markets from the world's biggest stocks.

Tesla (NASDAQ: TSLA) massively defied expectations in the past few weeks. The stock surged despite a Q1 earnings report that was dismal, and continued gaining as Musk made promises about robotaxis and Optimus robots.

Tesla stock dropped 14.3% to 284.70 during Thursday's stock market action — falling below its 21-day exponential moving average, the 200-day moving average and 50-day line as Mu