Trump-Musk Showdown Turns Costly — Tesla Investors Flee Amid $150 Billion Blow

The high-stakes feud has shaken investor confidence, fueling concerns about Tesla’s stability and future prospects.

Musk, who previously chaired the Department of Government Efficiency (DOGE), denounced a GOP-backed tax bill as a “disgusting abomination” and credited Trump’s past election success to his own early support. Following his comments, Musk announced his resignation from the federal department.

Trump fired back, threatening to revoke federal subsidies and contracts tied to Musk’s ventures, including Tesla and SpaceX.

In the fallout, Tesla shares closed at $284.70, dragging the company’s market capitalization below $900 billion. The Nasdaq Index also dipped 0.8% in the same session.

Investors are increasingly wary of Tesla’s direction in the U.S., particularly regarding its upcoming autonomous robotaxi service, expected to debut in Austin later this year and expand by 2026.

Adding to the pressure, Tesla’s European vehicle sales have reportedly slowed, and the company is once again under scrutiny over its autopilot system after a fatal 2023 crash linked to the software resurfaced.

Musk’s personal fortune has taken a $27 billion hit due to the stock slump, although he still holds the title of the world’s richest man.