Tesla's Stock Tumbles Amid Musk-Trump Brawl
- by Lutz Meier
- ~ 3 Min
Trump and Musk exchange harsh words over Twitter, intensifying their public feud - Trump and Musk engage in a feud concerning Tesla issues
Elon Musk found himself $150 million lighter in his wallet as the bitter spat between him and former President Trump took a toll on Tesla's shares. In a dance of tweets, the two went at it, causing Tesla's stock to tumble as the world watched the stock value plummet hand-in-hand with the heated social media exchange.
- Donald Trump
- Tesla
- Elon Musk
- USA
Tensions between Musk and Trump had been brewing since June 2025, and the impacts on Tesla were both immediate and far-reaching; underpinned by disagreements on policy and public argumentation.
Roots of the Conflict- Policy Disputes: Musk publicly opposed Trump's "Big Ugly Spending Bill," a tax and spending package that garnered criticism from Musk due to the substantial deficits it would create[1][3].- Administrative Decisions: Trump announced he was scrapping Musk's "EV Mandate," a policy promoting electric vehicle adoption, which was a significant blow to Tesla's interests[4].- Personal Attacks: Matters took a personal turn when Musk accused Trump of links to the late Jeffrey Epstein, a move that significantly escalated the feud and led to a barrage of verbal attacks[4][5].
Effects on Tesla's Stock- Market Volatility: In the months preceding the spat, Tesla's stock showed signs of instability due to broader market concerns and negative sentiment around Tesla dealerships, where demonstrations and violent outbursts were labeled "domestic terrorism" by the Justice Department[3].- Deteriorating Investor Confidence: As the feud intensified and became more public, with Musk criticizing Trump's tax bill and Trump reacting with apparent share sale allegations, investor trust waned even further[5].- Stock Price Decline: Although causality is difficult to pin down, news reports and timelines suggest that the stock price plummeted during the melee, suffering from the withdrawal of government support for EVs and the negative publicity surrounding Musk's contentious exchanges with the administration[3][5].
Summary
- Cause: Musk's opposition to Trump's tax bill, Trump's scrapping of the EV mandate, public feud, and protests/violence at dealerships.
- Effect on Tesla Stock Price: Increased volatility, negative sentiment, pressure on sales, and worsened investor confidence.
In summary, the feud with Trump had a multifaceted impact on Tesla's stock, causing a decline in value, increased market uncertainty, and negative publicity[3][5].
- The feud between Elon Musk and former President Donald Trump, rooted in policy disputes, personal attacks, and administrative decisions, significantly affected Tesla's stock price in the US.
- The volatile market, negative sentiment around Tesla, and decreased investor confidence, all exacerbated by the public disagreements between Musk and Trump, led to a decline in Tesla's stock price.
- The financial implications of the Musk-Trump brawl extended beyond Tesla, impacting the broader US business, technology, finance, politics, and general-news sectors as the world watched the unfolding saga.
