Tesla’s stock value sharply decreased on Thursday due to the escalating conflict between CEO Elon Musk and President Donald Trump.
The company’s shares dropped approximately 14.3% during the day, resulting in a loss of over $150 billion in market capitalization. This marked Tesla’s most significant single-day decline since March, which occurred amidst widespread consumer opposition to Musk’s involvement with the Trump Administration.
The stock downturn occurred after a public exchange of insults between the President and the world’s wealthiest individual. Musk had previously criticized Trump’s “One Big Beautiful Bill,” a comprehensive tax and spending proposal that recently passed in the House and is now under consideration. The bill includes tax cuts and reductions in federal spending, potentially impacting the subsidies that have contributed to Tesla’s—and Musk’s—financial success.
Until recently, Musk had been a prominent ally and supporter of the President, donating significantly to Trump’s campaign and subsequently leading the Department of Government Efficiency. However, on May 30, Musk resigned from his government position after expressing concerns about the large tax and spending package in an interview. He later condemned the bill on X, calling it an “disgusting abomination.”
The dispute intensified on Thursday, with Trump informing reporters that his previously positive relationship with Musk might be over, stating, “I’m very disappointed in Elon. I’ve helped Elon a lot.”
Musk responded on X, asserting that “Without me, Trump would have lost the election,” and adding, “Such ingratitude.”
The two figures continued to trade insults. Trump claimed he had dismissed Musk from his position in the Administration and threatened to terminate billions in government contracts held by Musk’s companies. Musk, in turn, shared a post advocating for Trump’s impeachment and replacement with Vice President J.D. Vance. He also made unsubstantiated claims that Trump’s name appears in the Epstein files, a collection of documents related to the deceased financier and convicted sex offender Jeffrey Epstein.
The decline in Tesla’s stock value on Thursday is the most recent development in a volatile period for the company, coinciding with Musk’s involvement in—and subsequent departure from—Trump’s inner circle. While Tesla’s stock initially rose after Trump’s election in November, it experienced a downturn earlier in the year as many customers boycotted the company in response to Musk’s increasing involvement in the Administration.
“`
