elon Musk and Donald Trump have been engaged in a public feud that has significantly impacted Tesla's stock price and Musk's personal wealth.
Reasons for the Feud
The conflict intensified after Musk criticized Trump's "One Big Beautiful Bill," a major tax and spending package. Musk argued that the bill's cuts to electric vehicle subsidies could harm Tesla's business. In response, Trump threatened to cancel federal contracts with Musk's companies, including Tesla and SpaceX, and publicly criticized Musk's role in the administration's efficiency efforts nypost.com+2thetimes.co.uk+2indiatimes.com+2reddit.com+15en.wikipedia.org+15thetimes.co.uk+15.
Musk's political activities have also drawn criticism. His support for far-right political groups in Europe and controversial statements have led to protests and boycotts of Tesla products, particularly in Germany, where sales have dropped by 60% financemagnates.com+7firstpost.com+7en.wikipedia.org+7en.wikipedia.org+1livemint.com+1.
Impact on Tesla's Stock
The feud has had a dramatic effect on Tesla's stock price. In early June 2025, Tesla shares plummeted by 14%, erasing over $150 billion in market value barrons.com+5thetimes.co.uk+5en.wikipedia.org+5politico.com+4barrons.com+4nypost.com+4. Since December 2024, the stock has fallen by more than 50% from its peak, wiping out over $800 billion in market capitalization forbes.com+2reddit.com+2reddit.com+2.
Analysts attribute the decline to several factors:
Political Backlash: Musk's involvement in the Trump administration and his political endorsements have alienated some customers and investors firstpost.comfinancemagnates.com+10en.wikipedia.org+10reddit.com+10.
Regulatory Concerns: Trump's tariffs and policy changes have increased costs for Tesla, particularly affecting its supply chain and international sales .
Declining Sales: Tesla's vehicle deliveries have dropped, with a 13% decrease in the first quarter of 2025 compared to the previous year firstpost.com.
