By Parrot Newspaper 
Tesla Stock Plummets as Musk–Trump Clash Turns Ugly
By Ricky Awodi, Parrot Newspaper
Tesla shares took a staggering dive on Thursday, shedding 14% and wiping out nearly $150 billion in market value, as an explosive rift between Elon Musk and former U.S. President Donald Trump erupted into a full-blown political and personal feud.
The sell-off marked one of Tesla’s worst trading days in recent memory and underscored growing investor anxiety over Musk’s increasingly volatile relationship with Washington — especially with Trump, who remains a powerful political figure with a history of targeting corporate adversaries.
At the heart of the fallout: Musk’s sharp criticism of a Trump-backed spending bill and fresh tariffs, which he warned could trigger a recession later this year. That dissent, shared publicly and defiantly, provoked a heated reaction from Trump, who reportedly threatened to sever lucrative government contracts with Musk’s companies — including SpaceX, a firm deeply entwined with NASA and the Pentagon.
“Go ahead, make my day,” Musk fired back on X, the platform formerly known as Twitter, escalating the tension into open warfare.
What started as a policy disagreement quickly descended into personal barbs and political power plays, with both men using social media to amplify their grievances — and with investors left rattled by the uncertainty.
“This was jaw-dropping and a shock to the market,” said Dan Ives, a tech analyst at Wedbush Securities and long-time Tesla bull. He warned that the Musk-Trump feud has stirred real fears about Tesla’s regulatory future, particularly as the company pushes for expansion in self-driving technology and robotics. “This must start to be calmed down. It puts a fly in the ointment of the Trump regulatory framework going forward.”
Tesla’s stock had surged last year on optimism that Musk’s close ties to Trump would yield favorable conditions for the automaker. But 2025 has been rockier. Musk’s involvement in controversial federal budget cuts and his growing political profile have sparked backlash, particularly in Europe, where Tesla’s brand has taken a hit.
Behind the scenes, investors have also worried about Musk’s focus. The billionaire has been fighting for a record-setting pay package — a battle that’s raised questions about his long-term commitment to Tesla. Last month, the company’s board was forced to deny reports it was quietly searching for a new CEO.
Investor confidence briefly rebounded after Musk pledged to step away from leadership of his cryptocurrency project, Dogecoin. He formally exited his government advisory roles at the end of May, in what some hoped was a signal he would double down on Tesla.
Instead, the company is now caught in the political crossfire.
The latest row was ignited after Musk slammed Trump’s $1.2 trillion spending bill as fiscally irresponsible. He also criticized new Trump-era tariffs, warning they would choke the economy just as signs of growth were beginning to return.
Trump, in turn, accused Musk of being disgruntled over the phase-out of a key federal tax credit for electric vehicles — a policy shift that’s already dented Tesla’s U.S. sales.
The feud deepened with Trump’s decision to withdraw his nomination of Jared Isaacman — a Musk ally and private spaceflight pioneer — to head NASA. The move was widely seen as a retaliatory gesture, signaling that the once-close alliance had officially unraveled.
Thursday’s stock slide drove Tesla shares to their lowest level since May, reversing recent gains and reigniting investor panic.
“Can someone please take the phone away from him?” pleaded Ross Gerber, a prominent Tesla shareholder and critic of Musk’s political entanglements. “Tesla is getting destroyed.”
Tesla Stock
With the 2026 U.S. election cycle fast approaching and Musk still straddling the worlds of tech, space, and politics, many are now asking whether Tesla — and its investors — can afford any more of this drama.