Tesla lost more than $150 billion in market value this week following renewed tensions between Donald Trump and Elon Musk. The drop, equivalent to a 14.2 per cent fall in the company’s stock, came after Musk publicly criticised Trump’s economic policy and the former president retaliated with threats to cut federal subsidies benefiting Tesla and SpaceX. The dispute, which played out over social media and campaign events, immediately triggered volatility across the tech sector. The market reaction began after Musk said Trump’s “One Big Beautiful Bill” had added $2.4 trillion to the national deficit and called it fiscally irresponsible. In response, Trump’s campaign suggested Musk’s businesses had relied heavily on public funding and floated the possibility of terminating remaining federal contracts and clean energy credits associated with Musk-linked firms. Tesla shares tumbled immediately, shedding more than $150 billion in value by the close of trading on Wednesday. Trump’s advisers said the administration was reviewing clean vehicle tax incentives and would consider future limits on government procurement from Musk-affiliated companies. Though not named directly, the implication was that both Tesla and SpaceX could be affected. Analysts said the confrontation had already shaken investor confidence in firms perceived to be politically exposed. The feud comes at a politically sensitive time for Musk, whose public persona has been closely tied to Republican politics over the past two years. His purchase of X, opposition to COVID-19 lockdowns, and vocal support for deregulation have earned him favour among conservative voters. However, his recent criticisms of Trump’s deficit spending have created a rift that could affect the regulatory climate for his companies if Trump returns to office in November. Musk’s wealth, which is largely tied to the value of Tesla stock, fell by over $30 billion in a single day according to the Bloomberg Billionaires Index. Tesla’s stock decline was among the largest daily losses in market capitalisation in corporate history. Though the company has faced previous sell-offs, including during production setbacks and leadership controversies, the politically driven nature of the current drop raised concern among institutional investors. Shares of other electric vehicle companies, including Rivian and Lucid, also fell by between 5 and 8 per cent, with analysts citing fears of a broader rollback of federal EV incentives. Energy sector lobbyists have already begun consultations in Washington to gauge the likely direction of Republican energy and infrastructure policy should Trump secure a second term....