Tesla Shares Plunge as Elon Musk and Donald Trump Engage in Public Feud

Tesla's stock experienced a significant decline of over 14% on June 5, 2025, erasing approximately $150 billion in market value. This downturn coincided with a public dispute between CEO Elon Musk and President Donald Trump over a proposed tax and spending bill. Musk criticized the bill for its excessive government spending and lack of fiscal responsibility, while Trump accused Musk of opposing the bill due to personal business interests.

The conflict intensified on social media platforms, with Musk suggesting that Trump owed his re-election to Musk's support, and Trump threatening to terminate government subsidies and contracts for Musk's companies, including Tesla and SpaceX.

Investors expressed concern over the potential regulatory implications for Tesla, especially regarding its autonomous vehicle initiatives. Analysts noted that the political tensions could hinder Tesla's plans to expand its driverless taxi services in multiple cities.

The public fallout between Musk and Trump has raised questions about the future of Tesla's relationship with the federal government and the broader impact on the electric vehicle industry. As the situation develops, stakeholders are closely monitoring the potential consequences for Tesla's operations and market performance.