Tesla has lost over $150 billion in market value as CEO Elon Musk wages a public feud with President Donald Trump over a massive federal spending bill. The company’s shares have dropped 21% since May 27 and are now down 33% since Inauguration Day, falling from $424 to $284.
The rift began when Musk called Trump’s $2.4 trillion spending package a “disgusting abomination” and criticized it for excluding EV tax credits. “Bankrupting America is NOT ok!” Musk posted on X, slamming the bill’s massive spending and lack of support for electric vehicles.
Tensions escalated after Musk exited Trump’s Department of Government Efficiency (DOGE) project. In response, Trump threatened to “terminate Elon’s Governmental Subsidies and Contracts” via Truth Social. Musk fired back, saying he never saw the bill before it passed and called it full of “disgusting pork.”
Adding fuel to the fire, Musk also criticized Trump’s approach to cryptocurrency and Bitcoin. Musk, a well-known Bitcoin advocate and influential figure in the crypto world, has been vocal about fair policies that support innovation. The growing tension with Trump has raised concerns about how future regulations might impact Tesla and the broader crypto market.
Tesla stock fell more than 14% on Thursday alone. Meanwhile, Trump took a jab, saying Musk “misses the Oval Office.” Musk, who donated $250 million to Trump’s recent campaign, claimed that without his support, “Trump would have lost the election.”
Despite the drama, analysts believe the stock dip may be overblown. “It’s more about regulatory fears than EV credits,” said Dan Ives of Wedbush. Still, the feud is making investors uneasy.
Tesla is Musk’s only public company, and its global sales have been slipping this year. His other ventures, SpaceX, X, and Neuralink, also face growing scrutiny. Interestingly, Trump’s own media company hasn’t fared better. Truth Social’s parent firm is down over 41% this year.
As the Musk-Trump feud plays out online and in headlines, it’s clear their once-strong alliance is now in tatters, and Tesla investors are feeling the impact.
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