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Tesla tanks $380 bn after Musk calls Trump's bill 'disgusting abomination'

What began as a high-powered bromance between two of the world's most polarising men—Donald Trump and Elon Musk—has now exploded into an all-out, ego-fuelled political and financial war. The result? A jaw-dropping $380 billion gone from Tesla's market cap. The drama unfolded after Musk publicly shredded Trump's new tax-and-spending bill on X, calling it a 'disgusting abomination.' Trump, never one to stay silent, fired back with a threat: he'd pull federal contracts from Tesla and SpaceX—Musk's prized ventures. The market didn't wait to pick a side. Tesla shares tanked 14 per cent in a single day, erasing $150 billion in value—the worst one-day loss in the company's history. Add to that a 30 per cent plunge this year alone, and Tesla now holds the unenviable title of 2025's worst-performing large-cap stock. Billionaire bromance gone bust Just months ago, Musk was seen as a key behind-the-scenes supporter of Trump's return bid. Now, the bromance has turned to bad blood. Tesla, once the world's eighth most valuable company, has slipped to tenth, clocking in at $917 billion. For context, that's more than ₹31 trillion down the drain. It couldn't have come at a worse time. Tesla is already under pressure—from slowing EV demand and global regulatory heat, to questions over Musk's links with far-right groups. Meanwhile, other Musk-affiliated companies are also feeling the aftershocks. SpaceX investor Destiny Tech100 plunged 13 per cent. And according to Ortex, short sellers raked in nearly $4 billion on Thursday alone—the second-biggest one-day haul ever. 'You mean the man who has lost his mind?' Behind closed doors, the White House reportedly tried to broker a truce with a call between Trump and Musk. That ship seems to have sailed. When asked about the possibility, Trump said: 'You mean the man who has lost his mind?' He added he wasn't 'particularly' interested in speaking to Musk. But Trump didn't stop there. In a Truth Social post, he wrote: '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!' According to him, Musk's outrage stems from the proposed rollback of the EV mandate. 'Elon was 'wearing thin,' I asked him to leave. I took away his EV Mandate… and he just went CRAZY!' Musk, never one to hold back, retaliated with a scorcher. He accused Trump of ungratefulness after his $300 million campaign donation, credited himself for Trump's 2024 win, and dragged Epstein into the mix. His closing mic-drop on X: 'Have a nice day, DJT!' Tesla's political nightmare As the war of words escalates, the fallout is no longer just personal—it's political. Musk recently quit his advisory role in the Trump camp, reportedly under shareholder pressure. But his abrupt exit has triggered political tremors across Tesla's empire. With Tesla, SpaceX, and Starlink reliant on federal contracts and regulatory goodwill, a souring relationship with Washington could prove costly. Meanwhile, Apple isn't immune to the political storm either. Its market cap has slipped 20 per cent this year to $2.99 trillion, pushing it to the third place globally. Trade tensions, AI rivals, and China's slowdown are all to blame. 'Junior high school fight' So where does this all go from here? Dan Ives of Wedbush summed it up, saying, 'It's a junior high school fight where these best friends are now becoming frenemies.' 'It's a Twilight Zone situation for all investors... The last thing they want is for Trump to go from being Musk's biggest cheerleader to his biggest threat," he was quoted as saying by Bloomberg. And that's not just rhetoric. If Trump's tax bill passes and EV credits disappear earlier than expected, JPMorgan estimates Tesla could lose $1.2 billion in profits. For an automaker already under pressure, that's no small blow. Paul Stanley of Granite Bay Wealth Management didn't sugar-coat it either: 'Given the inherent powers of the office of the presidency, I don't see how this could be anything but negative for Tesla and Musk.' Robotaxis to the rescue? In the midst of all this chaos, Tesla is gearing up for a bold pivot. On June 12, it will finally unveil its long-anticipated robotaxi service in Austin, Texas. Is this Musk's comeback moment? Dan Ives thinks so—'The robotaxi launch marks the start of Tesla's next growth chapter.' Still, he cautions it's a bumpy road ahead. 'This is definitely a little white-knuckle period for Tesla investors.'