Tesla Stock Price Lost 14% Yesterday, After Trump - Musk Social Media Spat

June 6, 2025: The shares of Tesla Inc. experienced a sharp 14% decline in their stock price, erasing over $150 billion in market value in a single trading session on June 5 and marking the largest single-day loss in the company’s history. The shares plunged following a highly publicised fallout between CEO Elon Musk and U.S. President Donald Trump.

Tesla shares closed at $284.70, down 14.3% from the previous day’s close. This extends the EV giant’s decline to 41% from its all-time high of $488.54, causing concerns among shareholders for its future value amid domestic and global volatility.

The steep decline pushed Tesla’s market capitalisation below the trillion-dollar threshold, closing at $916 billion,

What Is The Feud Between Musk And Trump?

The relations between Elon Musk and former President Donald Trump grew publicly hostile in the last few days. The fallout began when Musk, who had previously donated over $200–250 million to Trump’s campaign and served in his “Department of Government Efficiency”, publicly criticised Trump’s “One Big Beautiful Bill” (a $1.6 trillion tax-and-spending package). The market rout followed a fiery exchange between Musk and Trump, which played out in real-time across social media platforms and press conferences.

President Trump expressed his disappointment with Musk, stating from the Oval Office, “Look, Elon and I had a great relationship. I don’t know if we will anymore,” in response to Musk’s criticism of his tax and spending legislation, which the Tesla chief called a “disgusting abomination.”

Trump’s “One Big Beautiful Bill” seeks to reduce tax credits for electric vehicles and solar installations, which are key drivers of Tesla’s business model. It also aims to propose an annual fee of $250 for EV owners.

Trump countered by accusing Musk of being aware of the bill’s content for months and removing his “EV Mandate” as retaliation. He posted on Truth Social that Musk “went CRAZY” after the move.

Musk fired back on his X platform, suggesting Trump would not have won the 2024 election without his support and calling out what he termed “ingratitude” from the President. he back-and-forth caused roughly a $100–150 billion dip in Tesla’s market value and fuelled broader tensions between tech leaders and the Republican party.

How Did The Fued Affect Investor Sentiment?

The public feud between Musk and Trump has caused heightened concerns among investors.  Investors are concerned that Trump’s presidency may lead to operational restrictions on Tesla, potentially negatively impacting its operational performance. The stock’s steep fall reflects broader concerns about Tesla’s policy environment, as any changes to EV-related incentives could significantly affect future profitability.

What’s Ahead For Tesla?

Tesla’s near future looks uncertain. The feud between Elon Musk and Donald Trump has made some investors nervous, especially since it could impact Tesla’s chances of securing government support or contracts. This concern led to a sharp decline in the stock price, erasing a significant portion of its market value.

As the Musk-Trump rift continues to play out publicly, markets will be closely watching for any further fallout that could impact the overall EV policy or the stock’s future price.

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