Musk vs Trump: Tesla Loses $152B
Elon Musk and Donald Trump’s public dispute sent shockwaves through the market, with Tesla’s market cap plummeting by a staggering $152 billion. The escalating feud, sparked by Musk’s criticism of Trump’s “One Big Lovely Bill” has triggered a significant downturn for the electric vehicle giant, revealing the volatility tied to primary_keyword: political influence, alongside impacts on secondary_keyword: TrumpCoin’s fluctuations. The tit-for-tat exchange, involving concerns over immigration, green energy, and the national deficit, intensified as Musk alluded to Trump’s connections to the Epstein files. This crisis arrives at a critical moment, with News Directory 3 tracking both robotaxi service launches and production challenges. Will Tesla recover, or is this the beginning of a prolonged downturn? Discover what’s next.
Musk-Trump Feud Triggers Tesla Stock Plunge, Crypto Coin Dip
Updated June 06, 2025
A war of words between elon Musk and Donald Trump resulted in a dramatic day on Wall Street, erasing $152 billion from Tesla’s market capitalization. The feud also impacted TrumpCoin, which saw it’s value decrease by nearly 10%.
The disagreement escalated when Musk criticized Trump’s “One Big Lovely Bill” on X, citing concerns over immigration restrictions, green energy subsidy limits, and its potential $2.4 trillion contribution too the national deficit. Trump responded on Truth Social, alleging Musk opposed the bill due to its impact on electric vehicle tax credits benefiting Tesla. the exchange intensified with Musk alluding to Trump’s connection to the Epstein files.
The Tesla stock plunge coincides with the company’s planned robotaxi service launch in Austin, Texas. Musk has emphasized Tesla’s focus on robotics and autonomous vehicle technology, aiming to shift investor perception away from solely electric vehicle manufacturing. Though, recent quarterly results revealed production, delivery, and sales declines, particularly in Europe. Plans for a more affordable electric vehicle have also been scaled back.
Musk has denied that his stance against Trump is related to electric vehicle subsidies. He maintains Tesla doesn’t require federal tax credits to sell its vehicles. However, he expressed frustration with the bill’s EV and solar incentive cuts while leaving oil and gas subsidies untouched.
Protests against Musk and Trump’s policies have been ongoing, with the ”tesla Takedown” movement urging supporters to sell Tesla stock.
“They should initiate a formal investigation of his immigration status because I am of the strong belief that he is an illegal alien, and he should be deported from the country promptly,” Bannon said.
What’s next
The fallout from this high-profile clash could have lasting implications for Tesla, SpaceX, and the political landscape, particularly concerning government contracts and investigations into Musk’s immigration status.