Tesla's Share Price Plummets Amid Feud Between Musk and Trump

Strategic Insights -

Tesla's share price dropped suddenly from $358 to $295 yesterday, following a fresh spat between Elon Musk and Donald Trump. The electric car company has faced stiff competition in the sector and political turbulence, partly due to Musk's relationship with the US President. Trump attacked Musk on his social media site, describing him as a "train wreck" and "completely off the rails" after Musk announced plans to create a new political party. The America Party proposal would likely cause "total disruption and chaos", according to Trump.

Key Takeaways:

  • Tesla's stock price dropped from $358 to $295 after Musk and Trump's feud escalated.
  • The electric vehicle firm has tumbled in the stock market throughout 2025, facing stiff competition and political turbulence.
  • Musk's relationship with Trump has been a significant factor in Tesla's stock price fluctuations, with tensions erupting into an explosive social media showdown on 5 June.
  • Musk spent over $250m on Trump's election campaign, appeared at campaign rallies, and even spent election night at Trump's Mara-Lago resort in Palm Beach, Florida.
  • Tesla's share price has seen significant fluctuations throughout 2025, reaching lows of $228 in mid-March and rebounding to over $400 per share.
  • The company's stock price is often mirroring Musk's political machinations and tangles with Trump.
  • Trump's criticism of electric vehicles could potentially harm Tesla's sales, as he described Tesla products as "cars nobody else wanted".
  • Musk's proposal for the America Party would need to navigate significant regulatory hurdles and could face opposition from both parties.

Statistics:

  • Tesla's stock price dropped by $63 (17.6%) from $358 to $295.
  • Musk spent over $250m on Trump's election campaign.
  • Tesla's share price reached lows of $228 on 15 March 2025.
  • The company's stock price reached highs of over $400 per share in recent weeks.
  • Musk and Trump's feud has resulted in a 20% drop in Tesla's stock price since 5 June.

Sources:

  • The Times, "Tesla's share price plummets amid feud between Elon Musk and Donald Trump"
  • CNBC, "Tesla's stock price drops after Elon Musk's Twitter spat with Donald Trump"
  • Bloomberg, "Tesla's Share Price Fluctuates Amid Musk-Trump Feud"
  • Reuters, "Tesla's Musk faces hurdles with new party proposal, analysts say"