Tesla Stock Plunges 14% As Trump Threatens Musk’s Businesses

Tesla stock has been plummeting of late as tensions between CEO Elon Musk and President Trump boiled over.

Musk went on X to state that Trump wouldn’t have won the White House without his support. I Photo: Tesla X

Trump threatened to slash government contracts and subsidies that are critical to Musk’s various business interests, prompting Musk to respond that SpaceX would immediately decommission its Dragon spacecraft, Pres Subramanian reported for Yahoo Finance.

The confrontation escalated after Trump told reporters in the Oval Office he was "disappointed" in Musk.

Musk replied on X—the social media platform he owns—that Trump wouldn’t have won the White House without his support.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” Trump posted on Truth Social.

Tesla shares ended the day down 14.26%, marking the stock’s biggest single-day drop since March and its second-worst day since September 2020. The company’s market capitalization fell by more than $150 billion—the largest single-day loss on record.

The recent events mark a dramatic reversal in what had been one of the most defining relationships of Trump’s second term.

Musk publicly endorsed Trump in the summer of 2024 and quickly became one of the president’s most vocal allies, ushering in a wave of support for Trump from the tech and venture capital worlds that had largely distanced themselves from him during his first term.