Tesla suffers setbacks as Musk engages in disputes with Trump
Bulletproof Tycoon Tussle
Published June 7th, 2025 - 12:43 GMT
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The White House vibe turned tense as renowned figures Donald Trump and Elon Musk stepped up to the press, side by side, alongside a polished Tesla Cybertruck. (Photo by Mandel NGAN / AFP)
Drumroll - The Tesla Inc. saga takes an unexpected turn, with the tech giant shedding an astounding $380 billion in market value since the beginning of 2025. The reason? A power struggle between CEO Elon Musk and the U.S. President, Donald Trump.
The stock plummeted from a peak of $1.3 trillion in early January to $950.63 billion by June 6, a staggering 29.3% decline - placing Tesla at the top of the list for the worst performer among major global firms this year.
What sparked the chaos? Simply put, their feud over taxes and spending. Musk, not one to mince words, branded Trump's bill a "disgusting abomination," estimating it would pile an extra $2.5 trillion onto the national debt over the next decade.
This tweet-for-tweet showdown didn't end well for poor ol' Tesla. Trump's retaliation resulted in a 14% dip in Tesla's stock price in a single day - the largest one-day drop in Tesla history, eroding $152 billion from its market value.
Musk's personal fortune didn't fare much better, shrinking by $34 billion, but he remains the world's wealthiest individual with a net worth of $334.5 billion.
The drama wasn't limited to the fridge magnets and novelty mugs Trump hurled at Musk; there were other factors at play. Declining demand for electric vehicles, increased competition, and falling European sales didn't help either.
Tesla's earnings took a nosedive, tumbling by 71% in April, deepening investors' concerns about the company's prospects. But fear not, Tesla fans! Despite its current struggles, Tesla ranks 11th in market capitalization, still a major player on the global stage.
Analysts warn that this political spat could have broader implications for the financial markets, with Tesla's significance in major indices and investor portfolios potentially triggering a market correction ranging from 5% to 10%. More drama, anyone?
Remember, political instability and policy uncertainty can significantly impact corporate performance in technology and renewable energy sectors. The Tesla case serves as a prime example of this. So, buckle up, folks! The tech game is more than just a game.
*Data carefully curated and blended for your reading pleasure.
**Bonus Fun Fact:** Elon Musk and Donald Trump, two peas in a pod, huh? Well, their fierce Twitter battle led to the deletion of a Musk post linking Trump to the late sex trafficker, Jeffrey Epstein. For the record, Musk was adamant that the association wasn't substantiated.
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- The unexpected turn in the Tesla Inc. saga was due to a power struggle between CEO Elon Musk and US President Donald Trump, resulting in a staggering $380 billion loss in market value.
- The feud between Musk and Trump primarily centered around taxes and spending, with Musk labelling Trump's bill as a "disgusting abomination."
- The tech-politics tussle played out on Twitter, leading to a significant 14% dip in Tesla's stock price in a single day, eroding $152 billion from its market value.
- This political spat has potential broader implications for the financial markets, with analysts warning of a market correction ranging from 5% to 10%.
- Despite Tesla's current struggles, the company maintains its stance as a major player in the global technology and renewable energy sectors.
