As a public quarrel emerged between Elon Musk and President Donald Trump, Tesla has suffered its largest market cap loss ever, dropping $152 billion.
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The tension between Musk and Trump has led to a 14% dip in Tesla shares, stirring concern among investors who fear further consequences under the current administration.
The downfall began after Trump criticized Musk, labeling him “crazy” and threatening to revoke government contracts for his companies.
The dispute erupted over Trump’s proposed budget bill, which Musk condemned as a “disgusting abomination.”
Amid this public clash, Tesla’s stock price plummeted to its lowest in four weeks, marking one of its worst losses on Wall Street.
One key aspect of the spat is the removal of EV credits from the bill, an area vital to Tesla’s interests.
Musk’s public response was swift and bold, accusing Trump of ingratitude, stating, “Without me, Trump would have lost the election.”
His intense objections followed Trump’s displeasure concerning Musk’s opposition to the budget bill, which appears to curb incentives beneficial to Tesla.
Investor worries are now concentrated on the bill’s potential impact on Tesla’s remodeling of the autonomous driving sector.
Trump’s statements also suggest an effort to alter the regulatory environment, aiming to penalize Tesla’s advancement.
A significant factor in Tesla’s sudden dive is echoed by President Trump’s disappointment with Musk, who had recently left the Department of Government Efficiency.
Tesla’s declining financial momentum is evident, with shares down nearly 18% this week and 30% for the year.
Musk’s net worth also suffered, dropping $26.7 billion amid the turmoil.
Investor uncertainty is amplified by the feud’s potential to disrupt business relations at home and abroad, causing significant losses for Tesla’s market competitors.
“Investors fear that this Musk/Trump battle will…change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump Administration,” said Wedbush analyst Dan Ives, cited by Forbes.
As Tesla faces a slew of additional challenges, the influence of the Musk-Trump disagreement cannot be ignored.
The outcome of this high-stakes face-off may not only reshape Tesla’s future but also bear deeper implications for business-government relations moving forward.
It only took a few hours to wipe $152 billion of value from Tesla’s market cap and $250 million in value from TrumpCoin Thursday as President Trump and Elon Musk publicly and viciously feuded over the “Big Beautiful Bill.”https://t.co/eqylMj497A
— WIRED (@WIRED) June 5, 2025
