
Tesla shares fall nearly 10% after Trump lashes out at Musk
- by WCCB Charlotte
- Jun 05, 2025
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Associated Press
, Shares of Elon Musk’s electric vehicle company plunged more than 14%, knocking about $150 billion off Tesla’s market valuation. The shares started dropping right as President Donald Trump launched into his criticism of his former adviser. The shares started dropping right as Trump launched into his criticism of his former adviser.
Tesla shares doubled in the weeks after Trump was elected, hitting an all-time high on Dec. 17. They gave back those gains and more during Musk’s time at DOGE.
In April, Musk vowed to focus much more on Tesla and its upcoming launch of driverless taxis in Texas. That pleased investors and the stock rallied until late last week when Musk ramped up his criticism of Trump’s tax bill.
Tesla investors have soured on Musk’s relationship with Trump after initially welcoming it right after the election. The shares tanked earlier this year as Musk’s association with DOGE damaged the car company’s brand. Shares rallied when he promised in April to focus more on Tesla.
Now, Wall Street is worried about Trump’s hitting back at Musk through Tesla.
“Trump is tit for tat. If Musk tries to mess up Trump’s bill, Trump won’t be Mr. Nice Guy” when it comes to self-driving cars, which Musk acknowledges are a key to Tesla’s future, said Dan Ives of Wedbush Securities.
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