This article was originally published by The Epoch Times: Tesla Stock Tanks by 14%.
Tesla Motors stocks plummeted on June 5th as the feud between Elon Musk and President Donald Trump intensified.
Shares of the electric car maker fell 14.26% ($47.35) to $284.70. The stocks added losses in after-hours trading, sliding more than 2%.
Tesla has been rebounding since its April low, but it still falls about 25% this year, well below its December high of $488.54.
The nausea between Trump and Musk began when Musk became very critical of one big beautiful bill law. It was recently passed by the House of Representatives, called “unpleasant hatred,” and urged lawmakers to “kill the bill.”
Reflecting estimates from the Congressional Budget Office and the Joint Tax Commission, Musk is concerned that the bill will increase debt and deficit. This is trying to mitigate by government efficiency (DOGE) recommending reduced federal spending.
Musk was the leader of Doge, a cost-cutting advisory body created by Trump in January, as his 130-day tenure as a government employee ended before leaving the White House in late May.
Trump and administration officials say the deficit will decline as it includes around $1.7 trillion in forced savings over the next decade.
“The $1.7 trillion savings on Big Beautiful Bill are a permanent change in the law, meaning these savings will continue into the future,” the White House said in a recent fact sheet.
Disagreements about the bill escalated on June 5th, with two publicly traded criticisms being criticized all day.
“Elon and I had a great relationship. I don’t know if we’ll do that anymore,” Trump said with German Prime Minister Friedrich Merz in an oval office in response to questions from the press. “I was surprised.”
Trump told reporters that he believes Musk has been upset because the EV tax credit is not included in one big beautiful bill. Musk back to 2021 Revealed support To abolish all subsidies, including subsidies for electric vehicles such as tax credits.
Later that day, Trump wrote in The True Society, threatening to remove Musk’s “government subsidies and contracts” to save billions of dollars.
Tesla and SpaceX CEOs responded on social media platform X, “Trump would have lost the election” without his help.
The world’s wealthiest man pointed out that SpaceX would begin abolishing the Dragon’s spaceship shortly after Trump threatened to cancel his contract.
He also said he hopes for a recession later in the year due to the president’s global tariffs.
Trump again in the Truth Social Post on June 5th Recommended A lawmaker who passes the bill to “put our country on the path of greatness.”
What’s next for Tesla?
Market watchers are waiting for the escalation.
Dan Ives, a technology analyst at Wedbush, fears that the Musk-Trump fight will “change Tesla’s regulatory environment” especially in the autonomous realm.
“The friendship between Musk and Trump and now the ‘major beef’ is amazing, shocking the market and bringing a great terror to Tesla investors about what’s going forward,” Ives said. Notes Post X to social media platforms.
Despite the sale of Tesla’s stock, market analysts have shown optimism surrounding the company’s outlook, particularly the Battery Megapack and Optimus Robots.
Nancy Tengler, CEO and CIO of Laffer Tengler Investments, recently said that Tesla shares are trading on the story.
“Thousands of Optimus robots are working at the Tesla plant by the end of the year. Musk expects to scale quickly. He is confident that the company will reach a robot run rate of 1 million within five years,” she told the Epoch Times in a memo sent by email.
According to MarketBeatthe stock currently enjoys a “buy” rating of 21, with the 12-month stock price at nearly $294, nearly 3%.
“This feud won’t change our bullish view of Tesla,” Ives said.
“This is another Twilight Zone moment in Musk-Trump’s relationship.”
The US stock market concluded its trading session on June 5th in red.
The Blue Chip Dow Jones Industrial Average reduced 108 points (0.25%) to 42,319. The high-tech Nasdaq Composite Index fell to 19,298 by 162 points (0.83%). The wider S&P 500 dropped by 31 points, or 0.53%.
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