TSLA loss another $152 billion in the Market Since Musk-Trump spat

In just one day, Tesla lost around $152 billion in market value. The reason? A sudden and public argument between Elon Musk and former President Donald Trump. It all started when Musk criticized new federal budget plans and EV incentives. Trump fired back on social media. This drama and TSLA loss spooked investors.

We’re not just talking about two powerful men trading words. Their clash shook the stock market. Tesla shares dropped over 14%, marking one of the biggest single-day losses in its history. Investors, analysts, and even everyday people started asking: What does this mean for Tesla’s future?

Let’s break down how this feud started, why it caused such a huge market loss, and what might happen next. Let’s look at how a few public statements led to a storm in the financial world and why it matters to all of us.

Background: Musk and Trump’s Evolving Relationship

Musk and Trump were once in sync. Musk joined Trump’s “Department of Government Efficiency” (DOGE) and backed him financially. He even visited the White House, thinking he could help make the government more efficient.

Lately, though, things have changed. Musk began criticizing the new GOP tax-and-budget plan. He called it a “disgusting abomination.” Trump answered back, calling Musk out for being ungrateful. Their public clash turned once‑friendly ties into a high‑profile feud.

The Trigger: Public Spat and One‑Day Plunge

It all happened fast. Musk posted his criticism on X. Trump responded quickly. By the end of that Thursday, Tesla stock fell from about $322 to under $300. It registered a sharp 14–18% intraday drop, losing roughly $152-153 billion in value.

Investors were spooked. They feared the TSLA loss of a $7,500 EV tax credit, and worries arose that federal contracts for Tesla could be dropped. Bearish bets and risky options surged. Tesla even fell below the $1 trillion valuation milestone.

Factors Intensify TSLA Loss

The Musk-Trump clash was the spark, but other fires were already burning:

• Broad indices like the S&P 500 and Nasdaq had slipped in the days preceding the plunge.
• Tesla faced declining sales in Europe and China. Chinese rival BYD gained momentum.
• California mandates and an SEC investigation into Tesla’s X‑stake disclosure weighed heavily.
• Tesla had rallied over 22% in May, making some investors decide to cash out.

This mix of market, sales, and regulatory woes amplified the shock from Musk’s confrontation.

Ripple Effects: Musk’s Wealth & Company Image

Musk lost about $26.6 billion personally in a single day. His net worth dropped but remained near $388 billion.

Tesla itself lost its seat in the $1 trillion market‑cap club. The clash also damaged the company’s reputation. Analysts say Musk’s public disagreements could scare off consumers, investors, and future business partners.

Market & Political Assessments on TSLA Loss

Analysts described Friday’s drop as “historic” for the auto sector. Jim Chanos called the fallout “inevitable” given Musk’s political volatility.

Still, not everyone was all doom. Some remain optimistic. They point to Tesla’s upcoming Robotaxi launch in Austin as a game‑changer. Talks are reportedly underway for Musk and Trump to patch things up, though nothing is confirmed yet.

Forward Outlook: What Lies Ahead?

A. For Tesla

• The Robotaxi roll‑out on June 12 in Austin is a major catalyst.
• Tesla must regain ground in Europe and Germany.
• It needs to navigate changing policies around EV tax credits and regulations.
  

B. For Musk

• He must decide if he wants to tone down the drama.
• Rebuilding investor trust is key.
• His actions will shape both Tesla’s future and personal brand.

C. For Investors & Markets

• Keep a close eye on earnings reports and EV policy changes in Congress.
• Watch the Musk‑Trump relationship; another clash could again shock markets.
• Compare Tesla with rivals like BYD to measure broader EV trends.

Final Words

The $152 billion in value TSLA loss serves as a stark reminder: In today’s world, politics and business are tightly intertwined. A few social‑media posts by two powerful figures triggered a financial quake.

What’s next? Tesla’s future hinges on balancing innovation with political balance. We’ll soon find out if the Robotaxi, revised sales strategies, or wiser PR can steady the ship.

Frequently Asked Questions (FAQs)

Disclaimer:

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.