Elon Musk Sparks Tesla Stock Drop Amid Clash with Trump Over Spending Bill

When the worlds of Elon Musk and Donald Trump collide, sparks fly, and Tesla's stock takes a nosedive. On a turbulent Thursday, Tesla's shares plunged by a staggering 18% in response to the escalating feud between the two influential figures. This clash not only rattled the stock market but also raised concerns about Tesla's future trajectory.

The Presidential Showdown

Trump vs. Musk: A Battle of Titans

As the war of words between President Trump and Elon Musk intensified, Tesla's stock bore the brunt of the fallout. Trump's swift retaliation to Musk's critique of the budget bill set off a chain reaction, causing Tesla's value to plummet by as much as 18% in a single day—marking the most substantial drop in four years. The ongoing clash between these two high-profile personalities has investors on edge, contributing to Tesla's staggering 32% year-to-date decline.

The Catalyst for Decline

The Musk-Trump Tax Bill Feud

Insights from Paul Hickey, co-founder of Bespoke Investment Group, shed light on the driving force behind Tesla's downward spiral. Hickey points to the escalating feud between Musk and Trump over the tax bill as the primary trigger for the stock's sharp decline. The repercussions of this clash are far-reaching, with potential punitive actions looming on the horizon. Musk's strained relationships across political spectrums could spell more trouble for Tesla's future.

A Storm in the White House

Trump's Displeasure and Musk's Defense

The tension peaked when Musk openly criticized the GOP tax and spending bill, labeling it a "disgusting abomination." Trump, in response, expressed his disappointment with Musk's stance, highlighting the rift over the EV mandate. This clash of ideologies has not only caused a public spectacle but also raised concerns about the impact on Tesla's operations and future prospects.

As Musk and Trump engage in a war of words, the fate of Tesla hangs in the balance. The implications of this clash extend beyond mere rhetoric, potentially affecting Tesla's standing and future growth prospects. Investors are left watching anxiously as these two formidable figures continue to clash over critical policy decisions.

The Verdict

Uncharted Waters for Tesla

As the battle between Musk and Trump rages on, Tesla finds itself in uncharted territory. The fallout from this clash could have lasting implications for the electric car maker, impacting its market performance and investor confidence. The road ahead remains uncertain as Tesla navigates choppy waters amidst the clash of these influential titans.

As the dust settles on this high-stakes showdown between Musk and Trump, the future of Tesla hangs in the balance. The clash of these two influential figures has sent shockwaves through the market, leaving investors and enthusiasts alike on edge. How this clash resolves could reshape the landscape for Tesla and the broader electric vehicle industry.

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By: jsor@businessinsider.com (Jennifer Sor)
Title: Elon Musk Sparks Tesla Stock Drop Amid Clash with Trump Over Spending Bill
Sourced From: www.businessinsider.com/tesla-stock-price-tsla-elon-musk-trump-gop-tax-bill-2025-6
Published Date: Thu, 05 Jun 2025 19:36:42 +0000