MUSK-TRUMP CONFLICT: Tesla Shares Plunges As Fall Out Deepens
Investors sold off Tesla shares on Thursday as tensions between CEO Elon Musk and US President Donald Trump flared.
Shares in the electric vehicle manufacturer fell 14%, wiping off around $150 billion in market value in one of the worst days in months.
Watch Tesla’s shares drop 14% today as Elon Musk and President Trump’s simmering feud erupts 📉
— Bloomberg Opinion (@opinion) June 5, 2025
The rout erased about $150 billion from the EV maker’s market value, the stock’s biggest decline since March 10 pic.twitter.com/NWKayqJpsT
The losses provided a glimpse of what Musk would be up against as he defies a White House known for utilizing government authority against perceived enemies.
As the argument grew, Trump threatened to withhold government contracts from Musk’s companies, notably rocket firm SpaceX, which has contracts worth tens of billions of dollars with the government.
“Go ahead, make my day,” Musk fired back in response to the threat.
This just gets better and better 🤣🤣
— Elon Musk (@elonmusk) June 5, 2025
Go ahead, make my day … https://t.co/APmy7cV8iL
The dramatic shift in the two men’s relationship unfolded live on social media, rapidly spiraling from policy disputes to personal insults.
Analyst Dan Ives of Wedbush Securities, a longtime Tesla enthusiast, dubbed it “jaw-dropping and a shock to the market”.
He said the fight had raised investor concerns about the company’s regulation.
Tesla is looking to grow self-driving and robots, and it had hoped for a more flexible regulatory approach from the Trump administration.
“This must start to be calmed down,” Mr. Ives wrote in a note, adding that it “put a fly in the ointment of the Trump regulatory framework going forward”.
Musk’s entrance into politics has already been a tumultuous trip for Tesla shareholders.
Shares had risen last year on hopes that his association with Trump would boost the company.
However, investor confidence deteriorated this year as Musk’s friendship with Trump and his role in controversial government expenditure cuts proved a lightning rod, generating outrage and harming sales in Europe.
Investors were also concerned that Musk, who had been lobbying for a record-breaking pay deal, was not fully committed to the company.
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Last month, the chairman of Tesla’s board was obliged to publicly dispute a rumor that the business was looking for someone else to lead it.
Musk’s announcement on an investor call that he would be stepping down from his post as Doge CEO sparked an increase in the stock. He officially quit the government at the end of last month.
Tesla, meanwhile, is once again embroiled in political controversy.
Tesla shares are currently down 25% since the start of the year but are still up 60% over the past 12 months.
MUSK-TRUMP CONFLICT: Tesla Shares Plunges As Fall Out Deepens
