'Done With Tesla': Trump-Musk feud turns personal, US President to ditch his $80,000 shiny red EV? - The Economic Times Video
A red Tesla bought by Trump during a White House photo-op with Elon Musk is now set to be sold or given away amid a public fallout. Once a symbol of Trump's support for Musk and Tesla, the $80,000 car now sits unused as the two clash over a federal spending bill and explosive Epstein-related claims. As tensions escalated, Tesla's stock plummeted by 14%, erasing $152 billion in value. Trump said he's 'very disappointed' with Musk and 'not even thinking about Elon.'
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Time of India
30 minutes ago
- Time of India
Caught in Trump-Musk crossfire: Tesla stock sinks amid feud; $380bn wiped out — among 2025's biggest losses
The unlikely political marriage between Donald Trump and Elon Musk has ended in a fiery public divorce with Tesla's shares paying the price. The fallout began after Musk openly slammed Trump's new tax-and-spending bill on social media. In response, Trump fired back, threatening to cut off government contracts for both Tesla and SpaceX. The political clash added to Tesla's existing troubles, including slowing electric vehicle demand and Musk's controversial ties to far-right groups. As a result, Tesla is now the worst-performing large-cap stock of the year, with its market capitalisation plunging by 29.3% to $917 billion. The company, which ranked eighth globally in market value at the start of 2025, has now slipped to the tenth spot, as per Reuters report. Tesla's shares had initially surged 29% the week Trump won the 2024 election, fueled by investor optimism over a potentially favorable policy environment. However, since November 6, the stock has returned just 2.3%, compared to a 20% gain in the broader market over the same period—indicating growing investor unease. The White House has since stepped in, reportedly arranging a call with Musk to ease tensions. Despite a small rebound in Tesla shares on Friday, the broader damage appears done. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Descubra o valor de qualquer imóvel — basta digitar o endereço! Valor da casa | Anúncios de pesquisa Saiba Mais Undo Meanwhile, Apple has also faced a tough year, falling to the third most valuable company globally. Its $2.99 trillion market cap reflects a 20% drop this year due to slowing demand in China, AI challenges, and renewed trade tensions under the Trump administration. Tesla share price volatile after Trump-Musk feud Tesla shares plunged 14% on Thursday, wiping out over $150 billion in market value—their biggest single-day loss on record—amid a public feud between Elon Musk and U.S. President Donald Trump. The clash followed Musk's sharp criticism of Trump's tax-and-spending bill, which proposes ending the $7,500 EV subsidy by late 2025. The selloff hit broader markets, including Destiny Tech100 Inc., which holds a significant SpaceX stake, falling 13%. Short sellers gained nearly $4 billion from Thursday's crash, the second-largest single-day profit ever, according to Ortex. However, Tesla shares recovered some ground on Friday. At 9:40 am, the stock climbed 5.2% to $299.46, after Musk appeared open to de-escalating tensions, aligning with investor Bill Ackman's call for peace. Reports also suggest White House aides are arranging a call with Musk to cool the rift. The Thursday crash partly erased earlier gains from Tesla's announcement of a driverless "robotaxi" rollout in Austin, Texas. Still, the stock closed the week down 15%, its worst weekly performance since October 2023. Year-to-date, Tesla shares have dropped 22%, making it the worst performer among the "Magnificent Seven" tech stocks, despite remaining the world's most valuable automaker with a market cap of about $1 trillion. Yet its valuation—140 times projected earnings—continues to raise concerns amid growing political risks and regulatory uncertainty. What's gone wrong between Musk & Trump? Elon Musk stepped down from his role in the Trump administration last week after pressure from Tesla shareholders. While the split seemed friendly at first, things quickly turned sour. Since his exit, Musk has openly criticised Trump's key domestic policy—particularly the new tax bill, which he called a "disgusting abomination" on his social media platform, X. He argued that the bill undermines cost-cutting efforts led by the Department of Government Efficiency (DOGE), a team Musk was closely involved with. In response, Trump accused Musk of being upset over the bill's removal of electric vehicle (EV) tax incentives and claimed Musk turned against him because their once-friendly relationship no longer served his interests. Trump voiced his displeasure on Truth Social, stating: "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it!" During an Oval Office address, with German Chancellor Friedrich Merz present, Trump expressed disappointment in their deteriorating relationship. Trump claimed he had asked Musk to leave, citing his decision to remove the EV mandate. "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!" Musk retaliated on X, claiming credit for Trump's 2024 electoral success and criticising his ingratitude. The exchange grew more hostile when Musk referenced Trump's connection to the Epstein files, concluding with "Have a nice day, DJT!" Elon Musk's other companies like SpaceX and Starlink—leaders in space launches and satellite internet—are now under scrutiny because of his political ties. These businesses often rely on favorable regulatory approvals, helped by Musk's government connections. Musk, who donated $300 million to Trump's campaign, claimed Trump's 2024 win would depend on his support. He later criticized Trump for being ungrateful, backed his impeachment, and warned that Trump's global tariffs could push the economy into a recession. Tesla shares have seen major ups and downs since Musk endorsed Trump last July. The stock jumped on hopes of reduced regulation for robotaxis but later dropped due to weak sales and backlash over Musk's political involvement. What analysts say about the Trump-Musk rift? Some analysts believe the Trump-Musk rift may not last long, as it could hurt both sides. "It's a junior high school fight where these best friends are now becoming frenemies," Dan Ives of Wedbush, a well-known Tesla supporter told Bloomberg. "It's a Twilight Zone situation for all investors, because the last thing investors want to see is Trump go from a huge supporter of Musk and Tesla to a foe," he added. Meanwhile, most Congressional Republicans are backing Trump in the fallout. That's a positive sign for the proposed bill, which could remove a key tax credit of up to $7,500 for buyers of some Tesla and other EV models by the end of this year—seven years earlier than planned. According to JPMorgan, if the bill passes, Tesla could lose about $1.2 billion in profit for the year. According to Paul Stanley of Granite Bay Wealth Management, the public disagreement between Trump and Musk increases Tesla's political and reputational risks. He notes that ongoing controversy could affect investor confidence and market stability. "Given that inherent powers of the office of the presidency, I don't see how this could be anything but negative for Tesla and Musk," he said. What's next for Tesla ? Tesla faces a significant milestone with its robotaxi service launch scheduled for June 12 in Austin, Texas. This development is crucial for Musk's strategy to transform the company's focus towards autonomous vehicles and AI technology. Wedbush's Ives describes the upcoming robotaxi launch as the "start of the autonomous vision and the next chapter of golden growth," whilst acknowledging Tesla as "way oversold." He advises investors to maintain patience. "I still believe that they stay friends and supporters of each other, but this is definitely a little white-knuckle period for Tesla investors," Ives added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
30 minutes ago
- News18
'No Equivalence With Terrorists': Shashi Tharoor Says Mediation Between India, Pakistan Not Possible
Tharoor said there was no scope for mediation between two unequals, stressing that there was no equivalence between terrorists and their victims. Congress MP Shashi Tharoor has strongly asserted that there was no scope for external mediation between India and Pakistan, saying the two neighbouring countries are not equals, amid repeated claims by US President Donald Trump that he 'helped settle" the recent conflict. While speaking at the Council on Foreign Relations in Washington on Thursday, Tharoor, who is leading an all-party delegation on Operation Sindoor, said there was no equivalence between terrorists and their victims. 'Mediation is not a term that we are particularly willing to entertain. I'll tell you why not. The fact is that this implies, even when you say things like broker or whatever, you're implying an equivalence which simply doesn't exist," he said at the event. 'There is no equivalence between a country that provides safe haven to terrorism, and a country that's a flourishing multi-party democracy that's trying to get on with its business." 'There is no equivalence between a state that is a status quo power that just wants to be left alone by its neighbours, where the neighbours don't agree with us, and a revisionist power that wants to upset the geopolitical arrangements that have existed for the last three-quarters of a century. There is no equivalence possible in these cases, and in these circumstances, to suggest that you can mediate between two unequals is not possible," Tharoor went on to say. Tharoor has repeatedly denied Trump's claims of brokering a ceasefire between India and Pakistan, after tensions flared when India launched Operation Sindoor on May 7 in response to the Pahalgam terror attack on April 22. Both countries agreed to a ceasefire on May 10. Since May 10, when Trump announced on social media that India and Pakistan had agreed to a 'full and immediate" ceasefire after a 'long night" of talks mediated by the United States, he has repeated his claim over a dozen times that he 'helped settle" the tensions between India and Pakistan. During a meeting with German Chancellor Friedrich Merz, Trump against raked up the issue, saying he was 'very proud" to help stop the India-Pakistan conflict. 'I spoke to some very talented people on both sides, very good people on both sides," he said, adding that he warned of cancelling trade deals with both countries if the conflict persisted. 'You know what, I got that war stopped…Now, am I going to get credit? I'm not going to get credit for anything. They don't give me credit for anything. But nobody else could have done it. I stopped it. I was very proud of that," he added. Speaking on the American role in the conflict, Tharoor said he is 'guessing to some degree" that their priority would have been to keep themselves informed, conversations on both sides, and 'certainly my government received a number of calls at high levels from the US government". At the same time, the US must have been making similar calls at the highest levels to the Pakistan side, and 'our assumption is that's where, because that's the side that needed persuading to stop this process," he said. India has been maintaining that the understanding on cessation of hostilities with Pakistan was reached following direct talks between the Directors General of Military Operations (DGMOs) of the two militaries. (with PTI inputs) First Published: June 07, 2025, 09:04 IST
NDTV
31 minutes ago
- NDTV
"We Will Take A Look": Donald Trump On Elon Musk's Government Contracts Amid Feud
Washington: US President Donald Trump said on Friday that he has no plans to speak with Elon Musk, signaling the president and his former ally might not resolve their feud over a sweeping tax-cut bill any time soon. Addressing reporters aboard Air Force One, Trump said he wasn't "thinking about" the Tesla CEO. "I hope he does well with Tesla," Trump said. However, Trump said a review of Musk's extensive contracts with the federal government was in order. "We'll take look at everything," the president said. "It's a lot of money." Trump may get rid of the red Tesla Model S that he bought in March after showcasing Musk's electric cars on the White House lawn, a White House official said, speaking on condition of anonymity. Musk, for his part, did not directly address Trump but kept up his criticism of the massive Republican tax and spending bill that contains much of Trump's domestic agenda. On his social-media platform X, Musk amplified remarks made by others that Trump's "big beautiful bill" would hurt Republicans politically and add to the nation's $36.2 trillion debt. He replied "exactly" to a post by another X user that said Musk had criticized Congress and Trump had responded by criticizing Musk personally. Musk also declared it was time for a new political party in the United States "to represent the 80% in the middle!" People who have spoken to Musk said his anger has begun to recede and they think he will want to repair his relationship with Trump, according to one person who has spoken to Musk's entourage. The White House statements came one day after the two men battled openly in an extraordinary display of hostilities that marked a stark end to a close alliance. Tesla stock rose on Friday, clawing back some losses from Thursday's session, when it dropped 14% and lost $150 billion in value, the largest single-day decline in the company's history. Musk's high-profile allies have largely stayed silent during the feud. But one, investor James Fishback, called on Musk to apologise. "President Trump has shown grace and patience at a time when Elon's behavior is disappointing and frankly downright disturbing," Fishback said in a statement. Musk, the world's richest man, bankrolled a large part of Trump's 2024 presidential campaign. Trump named Musk to head a controversial effort to downsize the federal workforce and slash spending. Trump feted Musk at the White House a week ago as he wrapped up his role as head of the Department of Government Efficiency. Musk cut only about half of 1% of total spending, far short of his brash plans to axe $2 trillion from the federal budget. Since then, Musk has denounced Trump's tax-cut and spending bill as a "disgusting abomination." His opposition is complicating efforts to pass the bill in Congress where Republicans hold a slim majority. Trump's bill narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say the measure would add $2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been texting with Musk and hopes the dispute is resolved quickly. "I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it," Johnson said on CNBC. 'Very Disappointed' Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. Musk, who spent nearly $300 million in last year's elections, said Trump would have lost without his support and suggested he should be impeached. Trump suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. The billionaire then threatened to decommission SpaceX's Dragon spacecraft, the only US spacecraft capable of sending astronauts to the International Space Station. Musk later backed off that threat. Musk had been angered when Trump over the weekend revoked his nomination of Musk ally Jared Isaacman to head the US National Aeronautics and Space Administration. Two sources with direct knowledge of the dispute said White House personnel director Sergio Gor had helped turn Trump against Isaacman by highlighting his past donations to Democrats. Musk and Gor had been at odds since the billionaire criticized Gor's pace of hiring at a March cabinet meeting, the two sources said. A White House spokesperson, Steven Cheung, praised Gor's efforts to staff the administration but did not address his relationship with Musk. A prolonged feud could make it harder for Republicans to keep control of Congress in next year's midterm elections if Musk withholds financial support or other major Silicon Valley business leaders distance themselves from Trump. Musk had already said he planned to curtail his political spending, and on Tuesday he called for "all politicians who betrayed the American people" to be fired next year. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Musk's attention was too divided.
