Thu, 05 Jun 2025

Thu, 05 Jun 2025 Tesla shares tumble as Trump-Musk feud erupts

Tesla shares plunged 14%, marking one of the steepest declines in months as Musk and Trump battled online.

* Tesla's shares dropped 14% on Thursday, wiping out $150 billion in market value.
* The drop was triggered by a dispute between Elon Musk and US President Donald Trump.
* Trump threatened to cut off government contracts with SpaceX, worth tens of billions of dollars.
* Musk responded by saying "go ahead, make my day".
* Analyst Dan Ives said the clash had sparked fear among investors about what it might mean for regulation of Tesla.
* Investors were concerned that Musk's focus was on politics rather than running the company.
* The dispute escalated from policy disagreements to personal insults, with Trump accusing Musk of being unhappy about the elimination of a tax credit for electric vehicles.
* Tesla's share price hit its lowest level since May, erasing gains made on hopes that Musk would refocus attention on the company.
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