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Tesla Shares Plunge as Musk-Trump Feud Sparks Investor Panic

A bitter public fallout between Elon Musk and Donald Trump sends Tesla stock into freefall, wiping $150 billion in market value amid fears of regulatory retaliation.

Tesla shares plunged 14% on Thursday, erasing nearly $150 billion in market value, as tensions between CEO Elon Musk and former U.S. President Donald Trump exploded into a very public feud.

The fallout, which played out in real-time on social media, has rattled investors and raised serious concerns about the electric vehicle maker’s future relationship with the U.S. government. The spat escalated after Trump threatened to revoke federal contracts with Musk’s companies, including SpaceX, which holds tens of billions in government deals.

Musk’s sharp response — “Go ahead, make my day” — only further inflamed the situation, turning policy disagreements into personal attacks that shook Wall Street and drew market analysts into the fray.

“This is jaw-dropping and a shock to the market,” said Dan Ives, tech analyst at Wedbush Securities. “It must start to be calmed down… this puts a fly in the ointment of the Trump regulatory framework going forward.”

The collapse in share price marks Tesla’s worst day in months and reignites longstanding investor concerns about Musk’s political entanglements, distractions from leadership, and his controversial alignment with Trump’s economic agenda — including contentious government spending cuts and tariff policies.

Investor confidence had already been wavering. Hopes that Musk would focus on Tesla and step back from political distractions briefly boosted the stock last month. But this latest episode — triggered by Musk’s criticism of a Trump-backed spending bill and the removal of a key EV tax credit — has reversed that momentum.

As Musk’s disputes with Trump spilled over into NASA appointments and economic policy, investor anxiety surged.

“Tesla is getting destroyed,” tweeted longtime investor Ross Gerber, urging Musk to step away from social media and refocus on the company’s core business.

Vivian Akinyosoye
Vivian Akinyosoye is a seasoned Broadcast Journalist with a background in English Language and a Masters in International Law & Diplomacy. She began her career in 1999 in Southern Nigeria Ekiti State as a Freelance Radio Newscaster before joining Channels Television Lagos (2000) where she covered a several beats ranging from Health, Metrofile, Travels, Aviation, Business & Finance as well as State's House Correspondent. Vivian Adds to her roles a strong passion for human angle stories women and children.

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