Tesla's $150B Crash: Musk vs. Trump Feud Hits Hard
What’s Going On With Tesla’s Stock?
Tesla stock has taken a serious hit in the past week, dropping by over 14%. That’s a wipeout of nearly $150 billion in market value. The main reason? Elon Musk’s public battle with Donald Trump.
This is not just a blip. It’s investor panic fueled by politics.
Why Are Tesla Shares Falling?
You’ve probably seen Tesla stock fluctuate before, but this is different. It’s not about earnings, deliveries, or even EV demand. It’s about headlines. Specifically, Musk vs. Trump.
Here’s a breakdown:
1. Public Fallout Between Musk and Trump
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Musk slammed Trump’s proposed tax bill on social media.
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Trump fired back, threatening Tesla’s federal subsidies and contracts.
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Musk accused Trump of covering up Epstein files and called for his impeachment.
2. Investor Fear
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Political risk is now part of Tesla’s valuation.
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When a CEO picks fights with a former (and possibly future) U.S. president, that creates uncertainty.
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Investors are pulling back, worried about blowback from a Trump White House in 2025.
3. Threats to Federal Funding
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Trump said Musk’s companies get “billions and billions” in government support.
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If Trump returns to office, he could target Tesla and SpaceX contracts.
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That makes Tesla stock look riskier long-term.
4. Brand Damage
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Tesla’s customer base spans both sides of the political aisle.
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Musk getting political—and personal—could alienate buyers.
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EVs are still a choice purchase. Some consumers might now avoid Tesla on principle.
Related: Trump’s Crypto Ventures in Turmoil as Wallet Dispute Exposes Deep Rift
Historical Context
Tesla stock has always been volatile. But it’s usually tied to things like:
| Factor | Past Impact |
|---|---|
| Quarterly deliveries | High |
| Production delays | High |
| EV competition | Medium |
| Musk tweets (non-political) | Medium |
| Political feuds | Very High (current case) |
This current crash stands out because it’s self-inflicted and driven by a personal fight.
Should You Be Worried If You Hold Tesla Stock?
Short answer: It depends on your risk tolerance.
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If you're in it long-term and believe in Tesla’s tech and product roadmap, you might sit tight.
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If you’re worried about political interference or losing federal support, this might be a red flag.
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Either way, know this: the next earnings report probably won’t matter much if this public feud keeps going.
Bottom Line
Tesla stock is falling hard because Elon Musk picked a political fight with Donald Trump. The fallout has real consequences—investor confidence, brand perception, and potentially billions in government contracts.
Watch what Musk says next. That could move Tesla stock more than any factory update or delivery number.
