Tesla shares plummeted by 14%, wiping out approximately $150 billion in market value, as a public feud erupted between CEO Elon Musk and US President Donald Trump. The dispute, which played out on social media, involved Trump threatening to cut government contracts to Musk's companies and Musk criticizing a Trump-backed spending bill and tariffs, causing significant investor concern.
Tesla shares hit as Trump-Musk feud explodes
Elon MuskTeslaDonald Trump
AI Summary
TL;DR: Key points with love ❤️Tesla shares plummeted by 14%, wiping out approximately $150 billion in market value, as a public feud erupted between CEO Elon Musk and US President Donald Trump. The dispute, which played out on social media, involved Trump threatening to cut government contracts to Musk's companies and Musk criticizing a Trump-backed spending bill and tariffs, causing significant investor concern.
Trending- 1 Last year (2024): Tesla shares surged on hopes of a Musk-Trump alliance.
- 2 This year (2025): Investor sentiment soured due to Musk's political involvement.
- 3 Last month (May 2025): Elon Musk formally left the government.
- 4 Thursday (June 5, 2025): Trump-Musk feud erupted, leading to a 14% drop in Tesla shares.
- Tesla's market value dropped by $150 billion
- Increased investor fear regarding regulatory frameworks for Tesla
- Scrutiny on Elon Musk's focus on Tesla's operations
- Potential impact on government contracts for SpaceX
What: A public dispute between Elon Musk and Donald Trump, characterized by policy disagreements and personal insults, led to a significant drop in Tesla's share price and market value.
When: Tesla shares dropped on Thursday (June 5, 2025). The feud escalated publicly on this day. Elon Musk formally left the government at the end of last month (May 2025).
Where: The dispute primarily unfolded on social media platforms. The financial impact was observed in stock markets.
Why: The feud was triggered by Musk's criticism of a Trump-backed spending bill and tariffs, and Trump's subsequent threat to cut government contracts to Musk's companies. Investors reacted negatively to the political uncertainty and potential regulatory implications for Tesla and SpaceX.
How: The conflict played out live on social media, with both Musk and Trump exchanging criticisms and threats. This public escalation caused investor fear regarding the future regulatory environment for Tesla and Musk's other ventures, leading to a sell-off of Tesla shares.