Tesla's shares plunge 14% amid Elon Musk and Donald Trump feud; company loses $153 billion
The public feud between US President Donald Trump and Elon Musk has started to affect Wall Street, with the Tesla owner's company's shares dropping 14 per cent on Thursday.
This has happened just days after Elon Musk and Donald Trump criticised each other on social media. The Tesla owner and the SpaceX CEO said Donald Trump would have lost the election without him. On the other hand, the Republican leader threatened to break the federal contracts with the billionaire.
According to Bloomberg, the 14 per cent fall in shares reduced Tesla's market value by $153 billion.
In light of the President's statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW — Elon Musk (@elonmusk) June 5, 2025
Elon Musk and Donald Trump's friendship ends
After originally applauding Musk's friendship with Trump during the November 2024 elections, the Tesla investors have now soured on it. Musk's affiliation with DOGE hurt the vehicle company's reputation, which caused the shares to plummet early this year.
For months, the shareholders were tormented by Elon Musk's active role in the Trump administration. This is when the shares started to rally when he promised in April to focus more on Tesla.
Credit: X
However, the electric-vehicle maker's chief executive sparred with his former boss on any relief that came with his official departure from the government last week. While the rift emerged between the duo when Trump proposed tax legislation. While Musk has also criticised the 'Big Beautiful Bill' in public.
What's next for Tesla and Elon Musk?
Since Elon Musk openly supported Donald Trump's campaign for president last year, Tesla stockholders have experienced a number of stomach-churning fluctuations in recent months.
The sudden drop was noticed on Thursday, which indicated how strongly Musk controls the shares of his company. Additionally, some market observers also say that it is too dangerous to try to catch a falling knife, even though the route might eventually offer a buying opportunity.
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