Trump-musk feud sends tesla shares tumbling amid political showdown
The escalating feud between Elon Musk, CEO of Tesla, and former US president Donald Trump has triggered a sharp sell-off in Tesla shares, wiping out roughly $150 billion in market value. On Thursday, Tesla stock plunged 14%, marking one of its steepest declines in recent months as tensions between the tech billionaire and the political figure erupted publicly.
The conflict began with Musk’s vocal opposition to Trump’s “big, beautiful” spending bill, which Musk condemned as an “abomination” and “repugnant monstrosity.” Musk criticized the bill for increasing government debt and called on lawmakers to reject it, a stance that deeply disappointed Trump, who had once enjoyed a close rapport with Musk during his administration. Trump expressed surprise and dismay at Musk’s critiques, suggesting that Musk’s discontent was fueled by the removal of electric vehicle tax credits crucial to Tesla’s US sales.
The dispute quickly intensified on social media, with Musk accusing Trump of “such ingratitude” and claiming that without his support, Trump would have lost the 2024 election. Musk’s involvement in Trump’s campaign included significant donations and organizing grassroots efforts in key battleground states. Trump, in turn, dismissed Musk’s importance to his victory and threatened to terminate government contracts with Musk’s companies, including SpaceX, which holds billions in federal contracts.
Analysts described the public fallout as “jaw-dropping and shocking to the market,” highlighting investor fears about regulatory repercussions for Tesla. Musk’s earlier hopes for a favorable regulatory environment under Trump have given way to uncertainty as the feud unfolds. The rift also underscores Musk’s complex relationship with government affairs, which has been marked by both cooperation and conflict.
Initially, Musk held a significant role in Trump’s administration, spearheading budget cuts through the Department of Government Efficiency (DOGE) and attending cabinet meetings. However, after resigning from his government role, Musk has openly criticized Trump’s policies, further straining their relationship.
The clash between the world’s richest person and a former president, once allies, now rivals, continues to play out in public view, with both men trading insults and threats. The dispute not only affects their personal dynamics but also has significant implications for Tesla’s business and the broader political landscape.
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