The clash between Elon Musk and President Donald Trump has led to a massive blow of $152 billion to Tesla’s market value, sparking concerns among investors.
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As a result of this public dispute, Tesla’s stock lost $152 billion in value, highlighting the fragility of U.S. markets amid political tensions.
The consequences of this spat have been profound, leaving everyone wondering about the future of Musk’s businesses.
Tesla shares fell over 15%, erasing more than $100 billion from its market capitalization.
This stock collapse followed a heated exchange between Musk and Trump, with Musk criticizing the President’s budget bill and Trump threatening to revoke federal contracts from Musk’s companies.
Investor fears about a changing regulatory environment for Tesla’s autonomous driving initiatives exacerbated the decline.
Musk, who had been a major donor to Trump’s campaign, contributing nearly $300 million, did not hold back on social media.
In a bold retort, Musk stated, “Without me, Trump would have lost the election. Such ingratitude.”
This statement underlines the deep rift between two of the most influential figures in America today.
This public feud was precipitated by Trump’s budget bill, which Musk openly criticized as an “abomination.”
The bill, which curtailed EV tax credits—profitable for Tesla—and imposed a new $250 annual fee on EV drivers, was met with Musk’s vehement opposition.
Moreover, Trump’s criticism of Musk on Truth Social, where he blamed him for his reaction to the EV credits removal, fueled tensions.
Trump expressed disappointment after Musk left his role in the Department of Government Efficiency, claiming he was surprised by Musk’s sharp words.
Trump said, “Look, Elon and I had a great relationship. I don’t know if we will anymore.”
The unraveling of what was once a productive relationship raises questions about cooperation between business innovators and political leaders.
Anxieties among Tesla investors reflect potential regulatory changes under the Trump administration.
The company’s stock declined 14% to $285, marking its lowest level in a month.
With Elon Musk’s net worth dropping by $26.7 billion and Tesla’s shares plunging nearly 18% this week, the effects are far-reaching.
A public clash between #ElonMusk and #DonaldTrump has erased $150 bn from #Tesla’s market value.
Tesla shares fell over 14% as investors rushed to sell during the heated exchange between Musk, the world’s richest person, and Trump.#EpsteinFiles #muskvstrump @BorisPradhan… pic.twitter.com/FikAYJFFSU
— Business Standard (@bsindia) June 6, 2025
“I’m very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here… All of a sudden, he had a problem,” Trump stated.
As the dust settles, the repercussions of this clash are being closely watched.
With both Musk and Trump firmly rooted in their stances, it remains to be seen how this conflict will further impact the country’s political and economic landscape.
