Tesla Loses $150-B In Market Value Amid Musk–Trump Feud

Tesla shares plunged as President Donald Trump publicly clashed with the electric vehicle maker’s billionaire CEO, Elon Musk, his self-proclaimed “First Buddy,” Akash Sriram, Kanchana Chakravarty, Chris Kirkham, and Abhirup Roy reported for Reuters.

The sell-off followed Musk’s aggressive responses to Trump’s criticism of his stance on the tax bill. I Photo: Steve Jurvetson Flickr

Investors reacted with growing concern about the implications for Musk’s broader business empire. Tesla’s stock fell 14% by the close of trading, erasing $150 billion in market value on a day when there was no other major news related to the company.

The sell-off followed Musk’s aggressive responses to Trump’s criticism of his stance on the tax bill, prompting Trump to accuse Musk of being upset because the legislation would eliminate tax incentives for EV purchases.

Publicly feuding with Trump could create significant regulatory hurdles for Tesla and Musk’s other ventures. The U.S. Department of Transportation plays a critical role in determining whether Tesla can mass-produce robotaxis without pedals or steering wheels.

The agency is also investigating Tesla’s driver-assistance software, known as “Full Self-Driving,” following a fatal crash.

“Elon’s politics continue to harm the stock. First, he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,” said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network.

Saqib Iqbal Ahmed and Gertrude Chavez-Dreyfuss also contributed to the Reuters report.