📌 Table of Contents:
What Triggered the Tesla Stock Crash?
Trump vs Musk: Feud Escalates Publicly
Market Reactions & $152 Billion Wipeout
Truth Social vs X: The Tech Turf War
What Analysts Are Saying About TSLA
Should Investors Worry About Tesla’s Future?
Final Thoughts
What Triggered the Tesla Stock Crash?
Tesla stock (NASDAQ: TSLA) experienced a shocking 14.2% drop on June 5, 2025, wiping out approximately $152 billion in market value in a single trading session.
The crash followed an escalating public feud between Elon Musk and Donald Trump, with major policy and market implications. According to The New York Times, The Guardian, and BBC, the fallout was linked to disagreements over EV subsidies, AI regulation, and control over digital influence leading into the 2025 U.S. election.
Trump vs Musk: Feud Escalates Publicly
The conflict exploded on social media when Trump posted on Truth Social:
“Elon Musk is a clown who thinks he’s above America. No special treatment for Tesla under my leadership.”
In response, Musk fired back on X (formerly Twitter):
“Tesla doesn’t bow to anyone. We lead. We innovate. We don’t beg.”
Their public spat instantly spooked investors, igniting fears of political retaliation.
Market Reactions & $152 Billion Wipeout
The sell-off was swift and brutal.
TSLA closed at $183.20, down from $213.80
Tesla’s valuation plummeted by $152 billion in one day
Elon Musk’s net worth dropped $8.73 billion, per the Bloomberg Billionaires Index
Traders who shorted TSLA reportedly made massive gains (source: WSJ)
Analysts pointed to fears that Trump’s return to office could result in:
Elimination of EV tax credits
Delayed AI & robotaxi approvals
Potential antitrust scrutiny of Musk-led companies
Truth Social vs X: The Tech Turf War
This feud isn’t just political — it’s personal and financial.
Trump’s Truth Social (DJT) and Musk’s X are battling for control over conservative online audiences. As BBC put it:
“The feud is not just personal, it’s political and financial.”
Trump reportedly threatened to cut off federal contracts to SpaceX and Tesla, while Musk went as far as calling for Trump’s impeachment and even questioned his ties to Jeffrey Epstein.
What Analysts Are Saying About TSLA
Bloomberg: “Tesla now carries increased regulatory risk due to the Musk-Trump clash.”
CNBC: “Political backlash could delay robotaxi deployments.”
Wedbush Securities: Downgraded TSLA price target, citing “elevated political headwinds.”
The stock’s outlook has turned uncertain, not because of operations — but because of politics.
Should Investors Worry About Tesla’s Future?
✅ Buy or Hold TSLA if:
You see this feud as temporary political noise
You trust Tesla’s long-term AI, energy, and FSD strategy
You believe regulatory threats won’t materialize
⚠️ Be cautious if:
You expect prolonged hostility from a Trump-led administration
You’re concerned about canceled government contracts
You think political headlines will keep Tesla volatile
Final Thoughts
This Tesla stock crash is more than a typical market dip — it’s a high-stakes fallout between two of the world’s most powerful men. As Trump and Musk battle for political, financial, and technological dominance, Tesla’s fate may hang in the balance.
Investors must now consider political risk as a permanent part of the Tesla equation.
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