Elon Musk vs. Donald Trump: Feud Erases $150 Billion from Tesla's Market Value

On June 6, 2025, Tesla Inc. experienced a significant stock decline, dropping 14% in a single day and erasing approximately $150 billion in market value. This sharp downturn was precipitated by a public feud between CEO Elon Musk and President Donald Trump, which unfolded across social media platforms.

The conflict began when Musk publicly criticized the "One Big Beautiful Bill Act," a cornerstone of President Trump's economic policy, referring to it as a "disgusting abomination." In response, President Trump threatened to terminate government contracts and subsidies to Musk's companies, including Tesla and SpaceX. The dispute escalated rapidly, with Musk calling for Trump's impeachment and Trump accusing Musk of betrayal.

The financial repercussions were immediate. Tesla's stock plummeted by 14%, resulting in a loss of approximately $150 billion in market value. SpaceX-related investments also suffered, with a nearly 13% drop, jeopardizing $22 billion in government contracts. The broader market reacted as well, with the S&P 500 and Nasdaq Composite declining by 0.5% and 0.8% respectively.

Competitors like AST SpaceMobile and EchoStar saw their share prices rise, capitalizing on Tesla's misfortunes. Analysts expressed concerns about Tesla's vulnerabilities in a hostile regulatory climate and amid ongoing U.S.-China trade tensions. Critics, including Jim Chanos, noted that the Musk-Trump fallout was foreseeable.

The feud has also had significant social and political implications. Consumer boycotts and protests against Tesla have emerged, including the "Tesla Takedown" movement, which urges the public to divest from Tesla to economically impact Musk and challenge his political influence. Incidents of vandalism targeting Tesla vehicles and properties have been reported, with the FBI labeling them as domestic terrorism. Musk's political activities have alienated segments of Tesla's traditionally progressive customer base, particularly in environmentally conscious markets.

This incident is not the first time Tesla's stock has been affected by external factors. In February 2025, Tesla shares declined about 5% after President Trump announced plans for extensive tariffs on goods from Canada, Mexico, and China. The stock was also hit by declining registrations for Tesla vehicles in parts of Europe.

The Musk-Trump feud serves as a cautionary tale about the complexities of intertwining corporate leadership with political dynamics. The incident highlights the need for corporate leaders to navigate political engagements carefully to safeguard their companies' financial health and public image.