Tesla’s shares fell 14.2% on Thursday, causing a $152bn loss in market value amid a public feud between Elon Musk and Donald Trump. Trump threatened to cut Musk’s government subsidies, while Musk retaliated by threatening to decommission SpaceX spacecraft. Musk denied the threat later. The stock drop also led to an $8.73bn decrease in Musk’s net worth. – THE GUARDIAN
BBC – Trump-Musk relationship implodes with insults and threats
NDTV – How Donald Trump Became Elon Musk’s ‘X’
Background: From Alliance to Discord
Elon Musk was a major supporter of Trump’s 2024 presidential campaign, contributing over $290 million and later leading the Department of Government Efficiency (DOGE) in Trump’s administration. However, tensions arose when Musk criticized Trump’s “One Big Beautiful Bill Act,” which proposed eliminating electric vehicle (EV) tax credits and increasing the national deficit. Musk labeled the bill as “repugnant,” leading to a public fallout. news.sky.com+3en.wikipedia.org+3edition.cnn.com+3marketwatch.com+4en.wikipedia.org+4en.wikipedia.org+4cadenaser.com
Escalation of the Feud
In response to Musk’s criticism, Trump threatened to cancel federal contracts with Musk’s companies, including Tesla and SpaceX. Musk retaliated by accusing Trump of being involved in the Jeffrey Epstein scandal and announced plans to decommission SpaceX’s Dragon spacecraft, a threat he later retracted. marketwatch.com+4cadenaser.com+4indiatimes.com+4wired.com
Financial and Market Impact
The feud has had substantial financial repercussions:
Tesla’s Stock Decline: The company’s shares fell by 14%, marking the steepest single-day drop in over four years. nypost.com
Musk’s Net Worth: Elon Musk’s personal wealth decreased by approximately $26.6 billion in one day, though he remains among the world’s richest individuals. forbes.com+1nypost.com+1
Investor Sentiment: A Morgan Stanley survey indicated that 85% of Tesla investors believe Musk’s political activities are negatively impacting the company. theguardian.com+2reddit.com+2forbes.com+2
Broader Implications
The conflict has also affected other areas:
Trump Media & Technology Group: Shares fell by 8% following Musk’s allegations against Trump. en.wikipedia.org
Public Protests: Tesla showrooms and charging stations have become targets of vandalism and protests, reflecting growing public dissent. news.sky.com+1theguardian.com+1
While there are reports suggesting that Trump and Musk may be open to reconciliation, the long-term effects of their feud on Tesla’s brand and investor confidence remain uncertain. marketwatch.com
| Outlet | Bias (AllSides) | Bias (Ad Fontes) | Bias (MBFC) | Factual Accuracy | Sources |
|---|---|---|---|---|---|
 CBC News | Center-Left | Left-Center | Left-Center | High | |
 Toronto Star | Lean Left | Left | Left | Mostly Factual | |
 Global News | Not Rated | Center-Left | Center-Left | High | |
 CTV News | Center | Center | Center | High | |
 The Globe and Mail | Lean Left | Center-Left | Center-Left | High | |
 National Post | Lean Right | Right-Center | Right-Center | Mixed | |
 Toronto Sun | Right | Right | Right | Mixed | |
 The Tyee | Left | Left | Left | Mostly Factual | |
 Rebel News | Far-Right | Far-Right | Right | Low | |
 The Narwhal | Lean Left | Left | Left | High |
