Tesla shares plunged over 13% on Thursday amid a growing rift between CEO Elon Musk and US President Donald Trump. The electric vehicle company's stock fell from a midday high of $335.53 to $290.21 and continued to slide.
Tensions between Musk and Trump have escalated since Musk left his advisory role at the White House in late May. A key point of contention is Trump’s “big, beautiful bill,” which has strained their once-close alliance.
The Wall Street Journal reported that the White House’s decision to block Jared Isaacman’s nomination as NASA administrator further deepened the divide.
During a Thursday White House meeting, Trump expressed frustration with Musk’s opposition to the budget bill, particularly its removal of electric vehicle tax credits. “Elon knew this bill inside out, better than anyone here,” Trump told reporters. “But suddenly he’s got a problem—only after we cut the EV mandate.”
Musk fired back on X, writing, “Whatever,” in a flurry of posts targeting Trump. He later claimed Trump would have lost the election without his support, calling the president “ungrateful.” Trump retaliated on Truth Social, threatening to “terminate” Musk’s federal subsidies and contracts.
The feud has hit Tesla hard, with the stock’s double-digit drop erasing an estimated $17.2 billion from Musk’s $400 billion fortune, according to Forbes. Tesla shares had rallied 22% last month after Musk announced his departure from the Department of Government Efficiency to focus on his CEO role. However, the company has faced challenges since Musk’s involvement in the Trump administration, including protests at dealerships and declining sales and stock prices.
“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump told reporters in the Oval Office on Thursday.
Musk posted on X: “Without me, Trump would’ve lost the election, Dems would control the House, and the Senate would be 51-49. Such ingratitude.”
Trump countered on Truth Social: “Elon was wearing thin. I asked him to leave, I scrapped his EV mandate that forced people to buy electric cars nobody wanted—and he went CRAZY!”
The online sparring continued into Thursday afternoon as Trump gave senators until July 4 to pass the bill.
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