Asger Risom
A public clash between President Trump and Elon Musk triggered a sharp drop in Tesla’s stock, wiping out billions in market value in just 24 hours.
A high-profile political feud between two of America’s most polarizing figures just sent shockwaves through the stock market. With a single post, President Donald Trump may have triggered one of the steepest losses in Tesla’s recent history — and investors are still reeling.
Trump’s Post Sparks Market Panic
On Thursday, Trump took to Truth Social to sharply criticize Elon Musk and his companies’ reliance on public funding.
The easiest way to save billions from the budget is to end subsidies and government contracts to Elon
Following this statement, Tesla’s shares plunged by 14%, slashing more than $150 billion off the company’s market capitalization.
At the start of the day, Tesla was valued at nearly $1.1 trillion. By the end, that figure had dropped to $916 billion, as reported by Digi24.
Stocks Slide Despite Strong May Gains
Tesla’s share price had been climbing through May, boosted by Musk’s public commitment to dedicate more time to the company. But that momentum collapsed after Trump’s remarks, with share value now down to $278.40 — still higher than a year ago, when it hovered around $178.
The value loss is especially jarring considering the company’s rebound earlier this spring. Analysts say it underscores how politically exposed firms like Tesla can be, particularly when they benefit from federal contracts or clean energy incentives.
Uncertain Fallout
Though Tesla remains a dominant player in the EV sector, investor confidence may continue to suffer if the rift deepens. For now, neither Musk nor Tesla has issued a response to the president’s remarks.
Still, the incident serves as a reminder: in today’s climate, a single sentence from Washington can have billion-dollar consequences.