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

Mace | 6th June 2025 | International, Washington
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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...

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