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June 06, 2025 : The once-close alliance between U.S. President Donald Trump and the world’s richest individual, Elon Musk, has turned bitterly sour, leading to a historic collapse in Tesla’s stock price. On Thursday, June 5, following Trump’s public criticism of Musk, Tesla’s shares dropped by 14%, resulting in a market value loss of over $150 billion in a single day—the largest single-day decline in Tesla’s history and an unprecedented loss for any company in the stock market.
During the 2024 U.S. presidential election, Musk played a pivotal role by investing approximately $250 million in Trump’s campaign, significantly contributing to his victory. This support had previously boosted Tesla’s stock price. However, tensions arose over Trump’s proposed tax cuts and spending bill, which Musk criticized as “outrageous,” claiming it would inflate the U.S. national debt to $36.2 trillion.
In a heated exchange from the Oval Office on Thursday, Trump expressed disappointment, stating, “Elon and I had a great relationship. I don’t know if it will continue.” He also threatened to cancel government contracts with Musk’s companies. In retaliation, Musk took to the social media platform X, asserting, “Without me, Trump would have lost the election.” Musk even called for Trump’s impeachment.
The fallout had an immediate impact on the stock market, with Tesla’s shares crashing as investors reacted to the escalating feud. Analysts suggest that this conflict extends beyond personal disputes, potentially affecting U.S. space research and defense sectors.
Musk’s recent actions, including labeling Trump’s trade advisor Peter Navarro as “ignorant” and alleging Trump’s involvement in the Jeffrey Epstein files, have further inflamed tensions. This public spat has sparked a new drama in America’s political and economic landscape.
AI/MR
