 "Tesla loses $150 bn in market cap as Musk-Trump feud turns explosive")
A public clash between Elon Musk and US President Donald Trump has erased $150 billion from Tesla’s market value. Tesla shares fell over 14 per cent as investors rushed to sell during the heated exchange between Musk, the world’s richest person, and Trump.
By the end of the trading day, Tesla’s market capitalisation had dropped by $150 billion—more than the total value of companies like Starbucks and several other major US-listed firms. Market experts say investors fear Trump’s possible policies could slow down the development of autonomous vehicles in the US, which would hurt Tesla’s future.
Biggest market cap loss drags Tesla below $1 trillion
This was the biggest hit to Tesla’s market cap ever, dropping the company below the $1 trillion benchmark to $916 billion by Thursday’s close. The fallout began after Musk called for Trump’s impeachment and alleged the President was “in the Epstein files”—a claim he suggested explains why related documents remain unreleased, according to media reports. The full escalation of their feud is detailed here.
Musk criticises Trump’s ‘Big Beautiful Bill’
In a CBS interview, Musk criticised Trump’s ‘Big Beautiful Bill’, calling it a deficit-booster that would undo fiscal reforms by the Department of Government Efficiency (DOGE). Trump initially stayed silent but later responded : “Look, Elon and I had a great relationship. I don’t know if we will anymore.”
Trump retaliates with threat to end Musk’s federal contracts
As tensions escalated, Trump threatened to sever government contracts with Musk’s firms, including SpaceX. Posting on Truth Social, he wrote: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
Trump further claimed: “Elon was ‘wearing thin,’ I asked him to leave, I took away his electric vehicle (EV) Mandate that forced everyone to buy Electric Cars that nobody else wanted… and he just went CRAZY!”
From allies to adversaries: The fallout deepens
Once close allies, Musk and Trump have now turned on each other. Musk, who previously headed Trump’s DOGE and donated nearly $300 million to his 2024 campaign, now accuses Trump of reckless policy and ethics violations.