Fight between Trump and Musk crashes Tesla stock and raises concerns about the future of electric cars (Prometheus – Unsplash)
The recent exchange of jabs between Donald Trump and Elon Musk had major repercussions for Tesla. Tensions rose after Trump publicly criticized Musk and the incentives for electric vehicles (EVs) on his social network, Truth Social.
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Donald Trump claimed to have ended the “EV mandate” which, according to him, forced consumers to buy unwanted electric cars. Elon Musk, in turn, responded on X, saying he played a decisive role in Trump’s election victory and that Republicans might have lost the Senate without his influence.
The statements heightened tensions between the two, raising doubts about the future of the partnership between the government and SpaceX, Musk’s space company.
This unstable scenario worried Tesla shareholders, who fear negative impacts on the automaker. As a result, the company’s shares plummeted 14% in a single day, leading to a $152 billion loss in market value. Tesla is now worth $916 billion, falling below the $1 trillion mark.
This drop comes after a 22% rise the previous month, despite weak sales and market loss to BYD in Europe. Since the beginning of 2025, shares have already dropped nearly 30%. Musk also tried to negotiate changes to the budget bill to ease the reduction of incentives for EVs and solar energy, but without success so far.
The new law could impose a $250 annual fee on electric car owners, worsening the situation.
Source: Olhar Digital | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team
