Tesla Inc.’s stock experienced a significant drop after a simmering feud between CEO Elon Musk and President Donald Trump escalated into a public war of words between two of the world’s most influential figures.
On Thursday, Trump expressed his disappointment over Musk’s criticism of the president’s landmark tax policy bill. In response, Musk fired back on social media, stating that “without me, Trump would have lost the election.”
Subsequently, the president suggested terminating federal contracts and subsidies granted to Musk’s companies and claimed he had asked the Tesla and SpaceX leader to leave his administration—a claim Musk labeled as a “lie.” Musk further escalated the situation by announcing plans to decommission SpaceX’s Dragon spacecraft used by the U.S.
Tesla’s shares fell by 14% on Thursday in New York, marking the largest drop since March 10. The plunge erased approximately $150 billion from the electric vehicle manufacturer’s market value. The stock declined an additional 2.2% after trading hours.
The spectacle of the world’s richest man and the leader of the free world exchanging insults on social media signifies a dramatic breakdown of a once-formidable political alliance.
:contentReference[oaicite:27]{index=27}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
Musk had invested over $250 million to support Trump’s return to the White House. In turn, Trump appointed Musk to lead significant efforts to reduce government spending and restructure the federal bureaucracy. Musk stepped down from this role last week.
Ross Gerber, CEO of Tesla shareholder Gerber Kawasaki, sharply criticized Musk’s behavior in an interview with Bloomberg TV, stating that it could lead to lawsuits from the automaker’s investors and potentially halve SpaceX’s value. “Elon is not acting in the best interest of his shareholders,” said Gerber, whose firm has significantly reduced its Tesla holdings in recent years. The collapse signals the “real-time unraveling of Musk’s empire.”
For more detailed coverage, refer to the original Bloomberg article: Elon Musk’s Wealth Plunges Amid Trump Feud, Tesla Stock Drop.