Maison Blanche
Photo montrant Donald Trump et Elon Musk devant un cybertruck Tesla à la Maison Blanche le 11 mars 2025.
In an unexpected turn of events, the once-strong alliance between Donald Trump and Elon Musk has taken a dramatic plunge. On June 5, 2025, Tesla’s stock took a significant hit as tensions escalated between the former President and the tech mogul. This incident serves as a reminder of how political tensions can radically impact stock market performance.
Primarily, it was reported that Tesla’s shares dropped by 14.26%, closing at $284.70 . This loss wiped out about $150 billion from Tesla’s market capitalization, pushing the company’s value below the critical threshold of $1 trillion . This downturn is significant, especially for a company that has been at the forefront of the electric vehicle industry.
The decline in Tesla’s stock had a ripple effect on the New York Stock Exchange , resulting in a general decline in the market. The Dow Jones index fell by 0.25%, the Nasdaq dropped 0.83%, and the S&P 500 experienced a decline of 0.53% during the same trading session. These numbers underscore the weight that prominent tech companies like Tesla carry within the financial markets .
Trump’s Target on Musk
The breakdown in their relationship surfaced during a press briefing where Trump expressed his disappointment with Musk’s criticisms regarding a significant budget bill he was advocating for. Trump stated that one of the easiest ways to save billions in taxpayer money would be to “cancel government contracts and subsidies” related to Musk’s ventures, including Tesla and SpaceX. This statement sent waves through the business community and beyond.
In response, Musk took to his social media platform, X, to dismiss Trump’s claims as “nonsense” and labeled the former President’s assertions as “ false .” Adding fuel to the fire, Musk remarked that Trump’s anger was primarily driven by losing subsidies for electric vehicles, further underlining the deep fissures within their relationship.
Moreover, Musk emphasized that he funded Trump’s campaign in 2024, arguing that without his financial support, Trump would have likely lost the election. This admission highlights Musk’s significant role in Trump’s political sphere, raising questions about the influence of business interests on political outcomes.
Market Shockwaves
This political fallout between Musk and Trump could have more extensive ramifications for both Tesla and Musk’s broader business empire. As reported by Reuters , the conflict might complicate Tesla’s operational dynamics, especially in navigating regulations set by the U.S. Department of Transportation . The department governs crucial aspects, such as vehicle design standards and the production of autonomous robotaxis , areas crucial for Tesla’s future growth.
Industry experts have suggested that Musk’s political maneuvers have led to volatility in Tesla’s stock price in recent months, alienating potential buyers, particularly those aligned with Democratic views. “Elon’s politics continue to negatively impact the stock,” remarked Dennis Dick , a Tesla shareholder and Chief Strategist at Stock Trader Network , highlighting the divide that seems to be growing among consumers.
Additionally, Daniel Ives of Wedbush Securities pointed out that the deterioration of Musk’s once-close relationship with Trump marks a shocking twist for investors, raising fears over Tesla’s future stability. The ongoing conflict has undoubtedly made both fans and investors apprehensive about the potential for negative implications on Tesla’s market performance.
As both parties continue their public battle, the consequences are likely to shape not only their futures but also the broader landscape of American politics and its entwinement with corporate influence.