Tesla stock plummeted 14% on June 5, 2025, erasing over $150 billion in market value, following a public dispute between CEO Elon Musk and President Donald Trump. The feud, centered around a GOP tax bill, has raised concerns about Tesla’s future stability and its relationship with the U.S. government.
June 6, 2025 – New Delhi: Tesla Inc. (NASDAQ: TESLA STOCK) experienced a significant tesla stock decline on Thursday, dropping 14.3% and erasing approximately $150 billion in market capitalization. This was the company’s 11th-worst trading day on record. The decline is largely due to the intensifying public dispute between CEO Elon Musk and U.S. President Donald Trump.
Summary:
Genesis of the Feud
The conflict ignited when Musk publicly criticized the “One Big Beautiful Bill Act,” a legislative proposal backed by President Trump that includes significant cuts to electric vehicle (EV) subsidies. Musk labeled the bill a “disgusting abomination,” expressing concerns over its potential impact on the EV industry.
In response, President Trump threatened to terminate federal contracts and subsidies to Musk’s companies, including Tesla and SpaceX. He also accused Musk of suffering from “Trump derangement syndrome.”
Musk retaliated by suggesting that Trump’s name appeared in sealed documents related to the Jeffrey Epstein case, further escalating tensions.
Market Impact
Tesla’s stock closed at $284.70, reflecting a 14.3% decline and wiping out approximately $150 billion in market value. This downturn also affected President Trump’s media company, Trump Media & Technology Group (NASDAQ: DJT), which saw its shares fall by over 8%.
The broader market reacted to the feud, with the Nasdaq Composite Index experiencing a decline amid investor concerns over political instability affecting key industries.
Broader Implications
The public fallout between Musk and Trump has raised questions about the stability of federal support for the EV industry and the potential impact on companies reliant on government contracts. Analysts suggest that the political rift could lead to increased volatility in the sector.
Additionally, Musk’s involvement in politics and his controversial statements have drawn criticism, with some investors calling for him to step down from Tesla to protect the company’s reputation and shareholder value.
Conclusion
The escalating feud between Elon Musk and President Donald Trump has had immediate financial repercussions for Tesla and has introduced uncertainty into the EV market. Investors and industry stakeholders are closely monitoring the situation for further developments.
Decommissioning of Dragon Spacecraft
On June 5, 2025, Elon Musk announced via X (formerly Twitter) that SpaceX will begin decommissioning its Dragon spacecraft immediately. This decision follows President Donald Trump’s statement threatening to cancel federal contracts with Musk’s companies, including SpaceX, as part of broader budget cuts.
The Dragon spacecraft has been instrumental in transporting astronauts and cargo to the International Space Station (ISS) under NASA’s Commercial Crew Program. Its decommissioning could disrupt U.S. access to the ISS, especially given delays in alternative spacecraft like Boeing’s Starliner.
This move marks a significant escalation in the ongoing feud between Musk and Trump, which began over disagreements on federal spending and subsidies. The fallout has already impacted Tesla’s stock, which fell 14.3%, erasing approximately $150 billion in market value.
NASA has not yet commented on the implications of Dragon’s decommissioning. However, the agency’s reliance on SpaceX for ISS missions underscores the potential challenges ahead.
As the situation develops, the aerospace community and government agencies will need to navigate the repercussions of this high-profile dispute.
