Tesla loses $150 billion as Trump–Musk clash rattles markets

Mace | 6th June 2025 | International, Washington
Car,Crash,Tesla*2

Tesla shares fell 14.2 per cent after Elon Musk criticised Donald Trump’s fiscal policies, prompting threats to cut subsidies. The political fallout erased $150 billion in market value and triggered wider losses in the electric vehicle sector, raising fears of regulatory retaliation against Musk-linked companies.

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 sa...

Subscribe to The Mace

Join the member community shaping British politics and stay ahead of what's really happening in the world of politics and public affairs, with expert analysis, breaking news, and insider insights from Westminster and Brussels. The Mace is the leading news source and resource for the government affairs industry, offering required reading and lobby intelligence for professionals.

To see what you are missing out on by not subscribing to The Mace, click here to download our full membership info-pack. This includes having no paywall on op-ed content or profiles/interviews, allowing professional profiles to be read with maximum impact and visibility by government, special advisers, MPs, peers, civil servants, and policy and political decision-makers.



King Charles: The real ‘special ingredient’ in our relationship with the USA 

Lucy Carrier-Pilkington | April 29, 2026

King Charles’s address to Congress was designed to steady a strained special relationship. Twelve standing ovations later, the Palace had given Downing Street something politics could not: a

Pagefield and WPI’s merger throws into question the boutique PA firm model

Mace | March 26, 2026

As the two firms face a merger, the question over the longevity of the boutique firm is put under the spotlight.

Maritime trade bodies warn of citizens being caught in Iranian crossfire

Oliver Dean | March 12, 2026

As the Iranian conflict continues, maritime trade bodies have warned of the significant loss of human life thus far.

Britain faces a crisis of statecraft – not power.

Azeem Ibrahim OBE | March 9, 2026

Despite being criticised for its dwindling position on the world stage, Britain is not lacking in power. What it really needs is statesmanship.

US defence industry launches lobbying offensive against EU’s ‘Buy European’ push

Oliver Dean | February 20, 2026

As European policymakers push a 'Buy European' line, lobbyists and officials in Washington are keen to maintain dominance over the European arms market

Hanbury goes global

Oliver Dean | February 13, 2026

Hanbury's decision to erect offices in Washington and Sydney showcases the firms' strong public image.

Scotch whisky tariff cut in China worth £250 million

Thomas Edwards | February 2, 2026

Britain has secured a significant win for Scotland’s iconic whisky industry, with China agreeing to cut tariffs on Scotch whisky from 10 per cent to 5 per cent.

Trump ruffles feathers at Davos, posing an uncertain future for NATO

Madeline Dabbah | January 29, 2026

Trump’s shifting Greenland strategy at Davos unsettles NATO, strains transatlantic trust, and leaves the UK balancing sovereignty principles against alliance stability

Davos 2026 in the Age of Power Politics

William Cash | January 20, 2026

Davos is meant to be the place where the global public affairs class can compress a year of stakeholder management into five days, with a badge, a diary,

Gaza and the art of the deal

Mace | January 16, 2026

Trump secures ceasefire through dealmakers, but long term peace remains uncertain