The Tesla Tango: Musk and Trump’s Feud Sends Shares Spiraling
June 7, 2025, 3:40 am
Location: United States, California, San Francisco
Employees: 501-1000
Founded date: 2011
Total raised: $584.5M
Location: United States, Kansas, Winfield
Employees: 1001-5000
Founded date: 2011
Total raised: $820K
In the world of finance, few events can shake the ground like a public spat between two titans. Elon Musk and Donald Trump have danced this dance before, but their latest clash has sent Tesla’s stock into a tailspin. The fallout? A staggering $152 billion loss in market capitalization. This is not just a dip; it’s a plunge that has left investors gasping for air.
The trouble began when Musk criticized Trump’s tax and spending bill, labeling it a “disgusting abomination.” This was not just a casual remark; it was a declaration of war. Trump, never one to back down, retaliated with threats to terminate government contracts that benefit Musk’s companies. The stakes were high, and the tension palpable.
On June 5, 2025, Tesla shares fell 14% in a single day. This wasn’t just a blip on the radar; it marked the biggest hit to Tesla’s market cap ever, dropping it below the $1 trillion threshold. The stock settled at $916 billion, a stark reminder of how quickly fortunes can change. Investors watched in disbelief as the value of a company that once soared to great heights plummeted in the face of a Twitter war.
Musk’s relationship with Trump had always been a complicated one. The two had shared a symbiotic bond, with Musk often benefiting from government subsidies and contracts. But as the feud escalated, it became clear that this relationship was fraying at the edges. Musk’s departure from the Department of Government Efficiency (DOGE) seemed to ignite a firestorm. With his government ties severed, Musk unleashed a barrage of criticisms against Trump’s policies.
The conflict reached a fever pitch when Trump took to his own social media platform, Truth Social, to air grievances. He claimed that without Musk, he would have lost the election. The back-and-forth continued, with Musk asserting that Trump should be impeached and making unfounded claims about the president’s connections to Jeffrey Epstein. This was no longer just a business dispute; it had morphed into a personal vendetta.
Analysts were quick to weigh in on the situation. Some suggested that the market was overreacting, labeling Tesla a “nothing matters stock.” This sentiment reflects a broader trend where investors are often desensitized to the drama surrounding Musk. Yet, this time felt different. The stakes were higher, and the fallout more severe.
The implications of this feud extend beyond just stock prices. Tesla is grappling with declining sales in key markets, particularly in Europe. The company’s reputation is under siege, and the pressure to launch a long-delayed driverless ride-hailing service looms large. Competitors like Waymo are already making strides in the market, leaving Tesla scrambling to catch up.
Musk’s erratic behavior has not helped his case. His penchant for going “all in” on issues has often led to unpredictable outcomes. This time, however, it seems to have backfired spectacularly. As he continued to rail against the Trump administration, the reality of his situation became increasingly clear: he was losing ground.
The public nature of this feud has also drawn attention to the fragile relationship between business and politics. Musk’s reliance on government support has always been a double-edged sword. While it has fueled Tesla’s growth, it has also made the company vulnerable to political whims. The fallout from this spat could serve as a cautionary tale for other businesses navigating the treacherous waters of political influence.
As the dust settles, the question remains: what’s next for Tesla? The company is at a crossroads. With its market cap diminished and its reputation in question, it must find a way to regain investor confidence. The road ahead is fraught with challenges, but it’s not insurmountable. Tesla has weathered storms before, and its innovative spirit could yet lead it to calmer waters.
In the end, this feud is more than just a clash of personalities. It’s a reflection of the volatile intersection between technology, politics, and finance. Musk and Trump may have been allies once, but their latest spat has revealed the fragility of that alliance. As they continue to spar, the implications for Tesla and its investors are profound. The dance may not be over, but the music has certainly changed. Investors will be watching closely, hoping for a resolution that can restore stability to a company that has become synonymous with innovation and disruption.
In the world of stocks, nothing is guaranteed. But one thing is clear: the Tesla tango is far from finished.
The trouble began when Musk criticized Trump’s tax and spending bill, labeling it a “disgusting abomination.” This was not just a casual remark; it was a declaration of war. Trump, never one to back down, retaliated with threats to terminate government contracts that benefit Musk’s companies. The stakes were high, and the tension palpable.
On June 5, 2025, Tesla shares fell 14% in a single day. This wasn’t just a blip on the radar; it marked the biggest hit to Tesla’s market cap ever, dropping it below the $1 trillion threshold. The stock settled at $916 billion, a stark reminder of how quickly fortunes can change. Investors watched in disbelief as the value of a company that once soared to great heights plummeted in the face of a Twitter war.
Musk’s relationship with Trump had always been a complicated one. The two had shared a symbiotic bond, with Musk often benefiting from government subsidies and contracts. But as the feud escalated, it became clear that this relationship was fraying at the edges. Musk’s departure from the Department of Government Efficiency (DOGE) seemed to ignite a firestorm. With his government ties severed, Musk unleashed a barrage of criticisms against Trump’s policies.
The conflict reached a fever pitch when Trump took to his own social media platform, Truth Social, to air grievances. He claimed that without Musk, he would have lost the election. The back-and-forth continued, with Musk asserting that Trump should be impeached and making unfounded claims about the president’s connections to Jeffrey Epstein. This was no longer just a business dispute; it had morphed into a personal vendetta.
Analysts were quick to weigh in on the situation. Some suggested that the market was overreacting, labeling Tesla a “nothing matters stock.” This sentiment reflects a broader trend where investors are often desensitized to the drama surrounding Musk. Yet, this time felt different. The stakes were higher, and the fallout more severe.
The implications of this feud extend beyond just stock prices. Tesla is grappling with declining sales in key markets, particularly in Europe. The company’s reputation is under siege, and the pressure to launch a long-delayed driverless ride-hailing service looms large. Competitors like Waymo are already making strides in the market, leaving Tesla scrambling to catch up.
Musk’s erratic behavior has not helped his case. His penchant for going “all in” on issues has often led to unpredictable outcomes. This time, however, it seems to have backfired spectacularly. As he continued to rail against the Trump administration, the reality of his situation became increasingly clear: he was losing ground.
The public nature of this feud has also drawn attention to the fragile relationship between business and politics. Musk’s reliance on government support has always been a double-edged sword. While it has fueled Tesla’s growth, it has also made the company vulnerable to political whims. The fallout from this spat could serve as a cautionary tale for other businesses navigating the treacherous waters of political influence.
As the dust settles, the question remains: what’s next for Tesla? The company is at a crossroads. With its market cap diminished and its reputation in question, it must find a way to regain investor confidence. The road ahead is fraught with challenges, but it’s not insurmountable. Tesla has weathered storms before, and its innovative spirit could yet lead it to calmer waters.
In the end, this feud is more than just a clash of personalities. It’s a reflection of the volatile intersection between technology, politics, and finance. Musk and Trump may have been allies once, but their latest spat has revealed the fragility of that alliance. As they continue to spar, the implications for Tesla and its investors are profound. The dance may not be over, but the music has certainly changed. Investors will be watching closely, hoping for a resolution that can restore stability to a company that has become synonymous with innovation and disruption.
In the world of stocks, nothing is guaranteed. But one thing is clear: the Tesla tango is far from finished.