Tesla Stock Drop 2025

Tesla Stock Plunges 14% Amid Trump-Musk Dispute

Consensus reporting 1 sources analyzed
On May 30, 2025, Tesla shares experienced a significant drop of 14%, resulting in the loss of approximately $150 billion in market value. This dramatic decline occurred amid a public feud between Tesla CEO Elon Musk and U.S. President Donald Trump. The stock drop was triggered by escalating tensions between Musk and Trump, which played out on social media. The dispute involved threats from Trump to cut off government contracts to Musk's companies, including SpaceX, which has substantial contracts with the government. Musk responded defiantly, further intensifying the conflict. The rapid escalation of the feud led to a sell-off of Tesla shares, marking one of the worst days for the company in recent months. The feud between Musk and Trump highlights the potential risks for companies when their leaders clash with high-profile political figures. The incident underscores the volatility that can arise from public disputes, especially when they involve influential individuals and major corporations. The market reaction reflects investor concerns over the potential impact on Tesla's business operations and future prospects. The outcome of this feud remains to be seen, but the immediate effect was a substantial loss in Tesla's market value. Investors and industry analysts will be closely monitoring the situation to gauge the long-term implications for Tesla and its associated companies.

Sources Analyzed