Elon Musk’s War of Words With Trump Costs Tesla Billions

A public feud between Elon Musk and U.S. President Donald Trump sent shockwaves through the stock market, wiping out over $150 billion in Tesla’s value in a single trading day.

The dispute began over Trump’s budget bill but escalated quickly after Musk claimed Trump wouldn’t have been re-elected without his help. In response, Trump threatened to cut off federal contracts and subsidies to Musk’s companies, including Tesla and SpaceX.

This tension rattled investors already anxious about Tesla’s reliance on favorable regulations for its upcoming robotaxi launch and self-driving vehicle expansion. While Musk recently shifted focus back to Tesla, the political drama has raised concerns that the Biden-era support for clean energy and tech innovation may give way to a more hostile regulatory environment under Trump.

Musk’s empire, spanning electric vehicles, aerospace, and satellite internet, now faces political risks that could impact future growth, from SpaceX’s NASA contracts to Starlink’s international expansion.

With Tesla shares partially rebounding in after-hours trading, the long-term consequences of the Musk-Trump fallout remain uncertain.