June 6, 2025
Investors

Tesla stock plunges as Musk’s feud with Trump spooks investors


By BERNARD CONDON, Associated Press

Investors bought hundreds of billions of dollars of Tesla stock after Donald Trump was elected on a bet that politics were more important that profits.

In three hours Thursday, they learned yet again how dangerous that gamble could be.

Shares of Elon Musk’s electric vehicle maker plunged more than 14% in a stunning wipeout as investors dumped holdings amid a bitter war of words between the president and the world’s richest man. By the end of the trading day, $150 billion of Tesla’s value had been erased, more than what it would take to buy all the shares of Starbucks and hundreds of other big publicly traded U.S. companies.

The disagreement started over the president’s budget bill, then quickly turned nasty. After Musk said that Trump wouldn’t haven’t gotten elected without his help, Trump implied that he may turn the federal government against his companies, including Tesla and SpaceX.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his social messaging service Truth Social. “I was always surprised that Biden didn’t do it!”

The drop on Thursday partially reversed a big runup in the eight weeks since Musk confirmed that Tesla would testing an autonomous, driverless “robotaxi” service in Austin, Texas, this month.



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