While there may be usable wood, shattered means there are cracks throughout, many possibly too small to detect until the strings go on. A poor investment for guitar making, but wouldn't be much a problem for construction work.
The linked newspaper article says they don't know why the tree came down . . . Could it have had something to do with cutting a huge hole in the base?
Giant Sequoia is not the tree generally used for guitar making as that is the Coastal Redwood. It probably can be used, but I've never seen the wood offered by suppliers. I have used the Pencil Cedar that grows is the same or adjacent region in the Sierra Nevada mountains, and it works just fine.
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