Tesla shares suffered their worst fall in the company’s history, down 14% to $284.70 and wiping $150 billion of the firm’s market value, shocking investors in the EV maker who were collateral damage in a bitter battle.
The decline was triggered by a public feud between CEO Elon Musk and US President Donald Trump.
The plunge wiped out roughly $152 billion in market capitalization in a single day, marking one of the steepest losses in the company’s history.
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With this drop, Tesla’s valuation fell below the $1 trillion threshold, settling at around $916 billion.
Musk criticizes Trump’s tax and spending bill
The conflict began when Musk openly criticized Trump’s proposed $2.4 trillion budget bill, labeling it a “disgusting abomination.”
Trump retaliated by threatening to revoke federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX.
The build-up began after Musk resigned as Secretary of Department of Government Efficiency last Friday after facing legal setbacks, clashes with Cabinet members and little evidence to support claims of savings or government efficiency.
This triggered a crash in Tesla’s stock price and a significant drop in Musk’s net worth by around $27 billion to $388 billion.
The spat later intensified, with Musk calling for Trump’s impeachment and accusing him of suppressing files related to Jeffrey Epstein.
Musk says he helped Trump win election
In response to Trump’s claims, Musk said the president would have lost the election without him.
The feud has also affected Tesla’s sales in major markets such as Europe, China, and California, despite an overall increase in EV demand.
Despite the recent turmoil, Tesla remains the world’s most valuable automaker, far ahead of Toyota Motor’s $290 billion.
