Public Spat Between Musk and Trump Rocks Markets and Social Media
The escalating feud between Elon Musk and Donald Trump has shaken both Wall Street and Washington, culminating in a dramatic 14.26% drop in Tesla share price on Thursday. The highly publicised social media war between the Tesla CEO and the US President has become more than political theatre—it’s now having real economic consequences.
Tesla shares closed at $284.70 apiece, down significantly from earlier levels, wiping out approximately $150 billion in market capitalisation. The crash in TSLA has not only hit investor confidence but also cost Elon Musk nearly $27 billion in net worth, according to Forbes. This marks one of the most severe single-day declines in the company’s recent history and puts the electric vehicle (EV) maker under intense scrutiny.
Tesla Stock Price Performance [Google Finance]
How the Musk-Trump Clash Escalated
The drama erupted when Trump criticised Musk’s opposition to his new tax and spend legislation, dubbed the “Big Beautiful Bill.” During a press briefing with German Chancellor Friedrich Merz, Trump remarked, “Elon and I had a great relationship. I don’t know if we will any more… I’m very disappointed in Elon. I’ve helped Elon a lot.”
🚨TRUMP: “I’m very disappointed with Elon. I’ve helped him a lot. He knew the inner workings of the bill better than anybody sitting here. He had no problem with it. All of a sudden he had a problem & he only developed the problem when he found out we’re going to cut EV mandate” pic.twitter.com/aeCcmCAODQ
— DogeDesigner (@cb_doge) June 5, 2025
In response, Elon Musk took to X (formerly Twitter) to deny Trump’s claims: “False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!”
False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it! https://t.co/V4ztekqd4g
— Elon Musk (@elonmusk) June 5, 2025
Musk went on to claim he was instrumental in Trump’s election victory, stating: “Without me, Trump would have lost the election.” The exchange quickly spiralled, with Trump threatening to revoke federal subsidies and contracts with Musk-led ventures, including SpaceX and Tesla.
SpaceX Retaliation and Walkback
In a now-deleted post, Musk fired back by threatening to decommission SpaceX’s Dragon spacecraft, which recently brought home stranded astronauts. Although he later walked back the threat following advice from a user on X, the incident raised serious concerns about the future of US space programs and Musk’s influence over them.
Musk later replied: “Good advice. OK, we won’t decommission Dragon.”
Good advice.
Ok, we won’t decommission Dragon.
— Elon Musk (@elonmusk) June 6, 2025
Explosive Allegations and Epstein Claims
The feud reached a new level of toxicity when Musk alleged that Trump was linked to the unreleased files of convicted sex offender Jeffrey Epstein. “Donald Trump is in the Epstein files. That is the real reason they have not been made public,” Musk posted.
While the White House called the accusations “an unfortunate episode,” the claim set off a media storm. Right-wing commentators and hosts, such as Carl Higbie of Newsmax, labelled the accusation a “low blow,” questioning why Musk had once allowed his son to be in close proximity to Trump.
Financial Fallout: Tesla Stock Tanks
The most immediate impact of the Musk-Trump conflict has been on Tesla stock. The Tesla share price has now fallen in four of the last five sessions, with Thursday’s plunge alone knocking more than $152 billion off its market value.
Despite the drop, Tesla remains the most valuable automobile company globally, with a market cap still close to $900 billion, well above Toyota’s $290 billion. Over the past five years, Tesla shares have surged by 383%, although the stock is down nearly 25% year-to-date.
Thursday’s selloff also dragged down the broader market. The Nasdaq Composite fell 0.83%, the S&P 500 dropped 0.53%, and the Dow Jones slid 0.25%, with Tesla’s collapse weighing heavily on all three indices.
Political Reactions and Fallout
Prominent political figures have weighed in on the feud. Vice President JD Vance sided with Trump, writing, “I’m proud to stand beside him,” after Musk supported a post calling for Trump’s impeachment and Vance’s promotion to President.
President Trump has done more than any person in my lifetime to earn the trust of the movement he leads. I’m proud to stand beside him.
— JD Vance (@JDVance) June 6, 2025
Meanwhile, speculation around a potential truce surfaced after Politico’s Dasha Burns reported a possible conversation between the White House and Musk. Trump advisors have reportedly urged him to cool tensions and refocus on policy, particularly his much-contested megabill.
Musk and Trump’s Public Breakup: A Predictable Implosion?
Political commentators like Anthony Scaramucci and Katty Kay suggested the fallout was inevitable. “Was this not predictable?” asked Scaramucci. “We said this relationship would last three to six months, and now we’re in four and a half.”
Many believe this very public collapse could have lasting effects on US politics, tech influence, and financial markets. While both parties have benefited from their association in the past, it’s clear their clash is now causing turbulence far beyond Twitter.
Also Read: Qantas Airways Soars Amid Strategic Partnerships and Passenger Growth
Looking Ahead: What’s Next for Tesla and Musk?
The damage to Tesla stock is undeniable, but it remains to be seen how long-lasting the impact will be. Investors will be watching closely for signs of reconciliation—or further escalation. The EV giant’s fundamentals remain strong, but political risk is now a major concern.
As the feud unfolds in real-time across X and Truth Social, one thing is clear: the clash between Elon Musk and Trump is more than personal—it’s political, financial, and global.
