Tesla, the world-renowned electric vehicle maker, suffered a massive blow on Thursday when its stock price dropped by 14%, wiping out a staggering $152 billion from its market value in a single day. This sharp decline comes amid escalating tensions between Tesla’s CEO Elon Musk and former U.S. President Donald Trump.
Elon Musk was once a key supporter of Trump’s presidency, actively backing his campaign efforts. However, recent disagreements have driven a wedge between the two high-profile figures. Trump publicly criticized Musk’s electric vehicle mandates, calling the policies “crazy” and took credit for removing them during his time in office.
In a recent statement from the Oval Office, Trump expressed frustration with Musk’s reaction to the latest government spending bill, particularly the exclusion of electric vehicle tax credits. “Elon and I had a good relationship, but whether that lasts, I don’t know,” Trump said.
The feud sent shockwaves through financial markets, as investors reacted to the possibility of lost government contracts and reduced support for Musk’s ventures. Tesla’s market capitalization fell below the $1 trillion threshold for the first time in months, landing at $916 billion.
CNBC called this the biggest single-day loss in Tesla’s history, highlighting the volatility political factors can inject into the market.
Musk took to his social media platform X to assert his influence, stating, “Without me, Trump would have lost the election.” He warned lawmakers supporting the spending bill that they would face tough challenges in upcoming primaries.
Calling the bill “disgusting and twisted,” Musk’s remarks signal a clear break from previous support for the Trump administration.
This public spat between two powerful figures illustrates how closely politics and business are intertwined, especially in sectors like clean energy and electric vehicles. For Tesla, the stakes are high—not only financially but also in terms of government policy support that can make or break emerging technologies.
As the dust settles, investors and industry watchers will be keenly observing how Musk navigates this politically charged environment, and whether Tesla can regain investor confidence in the coming weeks.
