Tesla Shares Plunge 14% as Musk-Trump Feud Sparks $150 Billion Wipeout

 Tesla Inc. shares plummeted by over 14 percent on Thursday, June 5, 2025, as escalating tensions between CEO Elon Musk and U.S. President Donald Trump sent shockwaves through financial markets, erasing approximately $150 billion from the electric carmaker’s market capitalisation.

The sharp decline saw Tesla stock close at $284.70, dragging its overall valuation below the $900 billion threshold and prompting a broader dip in the Nasdaq Index, which slid 0.8 percent.

The dramatic sell-off followed a public fallout between Musk and Trump, which has intensified in recent days.

Musk, who recently stepped down as head of the Department of Government Efficiency (DOGE), criticised Trump’s signature tax and spending bill as a “disgusting abomination” and implied that the president owed part of his electoral success to his support.

Trump retaliated by threatening to strip federal subsidies and contracts from Musk’s companies — a move that, if executed, could significantly affect Tesla and SpaceX, both of which benefit from government partnerships.

The market reaction underscores growing investor concern over Tesla’s regulatory future, particularly in the U.S. where the company is preparing to launch autonomous robotaxi services later this year in Austin, Texas, with wider expansion expected in 2026.

Analysts say the political row could complicate regulatory approvals or influence policy direction in sectors critical to Tesla’s operations.

“Investors are clearly spooked by the political risk now surrounding Tesla,” said one market analyst.

“When the CEO of one of the world’s most valuable companies enters into a public feud with the president — and federal contracts are being openly threatened — markets respond.”

Tesla is also contending with external pressures.

Reports indicate a slowdown in vehicle sales across Europe, while renewed scrutiny has emerged over the company’s autopilot system following the resurfacing of a fatal crash in 2023 that has been linked to software faults.

The turmoil has had a direct impact on Musk’s personal fortune, shaving nearly $27 billion off his net worth in a single day.

Despite the setback, Musk remains the world’s richest individual.

Tesla has not issued an official statement regarding the stock dip or the ongoing public dispute as of press time.