Unbridled Revelation
Stock in Tesla Plummets Due to Unraveling Public Feud Between Trump and Musk
Elon Musk and President Trump's feud has intensified rapidly in June 2025, causing a significant stir in both Tesla's financial standings and the broader political landscape.
The Intensifying Brawl
- Verbal Sparring: The altercation ignited when Musk publicly lambasted Trump's budget bill, prompting Trump to express displeasure and threaten to scrap lucrative government contracts for Musk's companies.[2][3][4]
- Mutual Mudslinging: Musk then declared that Trump wouldn't have won the presidency without him, and later hinted without evidence that Trump's name appears in Jeffrey Epstein-related files, suggesting a cover-up.[2][3][4] Trump vehemently dismissed these allegations and shows no signs of seeking reconciliation.[2][3][4]
Impact on Tesla's Net Worth and Stock Price
- Market Response: The feud sent Tesla shares plummeting by 14% on Thursday, directly due to the escalating social media war and Trump's threat to revoke government contracts.[4][1]
- Short-term Rebound: Tesla's stock recouped some losses on Friday after the White House hinted at a relaxation in tensions. However, the overall market sentiments continue to be cautious, with no lasting reconciliation in sight.[4][1]
- Prolonged Volatility: Analysts foresee that the dispute exposes Tesla and other Musk ventures like SpaceX, Starlink, and X to regulatory and political risks, which could impact future government contracts and regulatory approvals, potentially devaluating Tesla further.[1]
Broader Implications
- Regulatory and Policy Risks: The feud has garnered the attention of federal agencies with potential ties to Trump's administration, which hold power over Musk's companies across domains like safety, privacy, and contract awards.[1]
- Influence on Innovation and Space Policy: The standoff could sway outcomes for emerging technologies, like brain-chips and America's space aspirations, given Musk's pivotal role in these sectors.[1]
At a Glance
| Date/Event | Tesla Share Price Impact | Key Developments ||----------------------|------------------------|-----------------------------------------|| Escalation (June 5–6)| Down 14% | Musk criticizes budget, Trump threatens contracts[4] || Friday (June 7) | Partial recovery | White House signals possible easing[4][1] || Ongoing | Elevated volatility | No reconciliation, policy risks persist[4][1] |
To put it bluntly, the Musk-Trump battle has brought immense volatility and uncertainty to Tesla's shares and Musk's overall business ventures, with potentially far-reaching consequences as the political and regulatory landscape unfolds.[1][4][2]
- The market capitalization of Tesla's tokens significantly decreased following the escalating feud between Elon Musk and President Trump.
- The intense verbal sparring between Musk and Trump affected the investments in the stock-market, causing a 14% decrease in Tesla's share price.
- The feud between the two leaders has raised concerns in the technology sector, as it could influence policy-and-legislation and impact future government contracts.
- The social-media rhetoric between Musk and Trump has raised questions about the role of politics in finance, as government contracts could potentially affect stock prices.
- The entertainment value of this feud has been a topic of general-news, with many speculating about the long-term implications of their ongoing battle.
- The intensifying brawl has not only affected Tesla's financial standings but could also have implications for other sectors, such as space policy and emerging technologies, where Musk plays a key role.
