Tesla loses $150bn over Trump-Musk feud

Tesla shares went into free-fall on Thursday, June 5, 2025, as United States President Donald Trump publicly feuded with the electric vehicle maker’s CEO Elon Musk.

Investors watched the unfolding drama with growing worry about what the fracas could mean for Musk’s business empire.

The carmaker’s shares ended the day down 14%, wiping off $150 billion in market value on a day absent other news about the company.

Traders dumped Tesla in heavy trading after Musk quickly responded to Trump’s criticism with social media posts that stepped up criticism of the president’s tax bill.

Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases.

Elon Musk: Trump would’ve lost election without me

Openly feuding with Trump could pose multiple hurdles for Tesla and the rest of Musk’s sprawling business empire.

The U.S. Transportation Department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels.

The agency is also investigating Tesla’s driver-assistance software, known as “Full Self-Driving,” following a fatal crash.

“Elon’s politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,” Tesla shareholder Dennis Dick told Reuters.

The Star

Segun Ojo

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