Tesla lost $152 billion after Musk and Trump quarrel
6 June 2025 05:15
Elon Musk’s Tesla company has sharply lost $152 billion in market value after a public conflict between US President Donald Trump and Musk. This is reported by "Komersant Ukrainian" with reference to CNBC.
Tesla shares fell by 14% on Thursday after President Donald Trump threatened to cancel government contracts for CEO Elon Musk’s companies. The move reduced the company’s value by $152 billion, the biggest blow to its market capitalization in history.
Thus, the total capital of the company fell below $1 trillion and amounts to $916 billion.
According to Reuters, shares of Trump Media and Technology Group Corp fell 8.04% to $20.12.
Musk wrote that the bill voted by the House of Representatives to cut taxes and increase funding for the army and the immigration service is a “huge, outrageous, corruption-filled, wasteful abomination.”
NBC News reported that Musk tried to convince Trump and other GOP administration members to change aspects of Trump’s bill that would have limited tax credits for electric vehicles and solar energy for residential properties that generate Tesla’s profits.
The measure also includes a new annual fee of $250 for electric vehicle drivers.
As a reminder, the President of the United States of America, Donald Trump, said that the Department of Government Effectiveness (DOGE), headed by billionaire Elon Musk, will cease to exist at “some point.”
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Elon Musk is the world’s biggest victim of Trump’s trade wars
reported that Elon Musk was the world’s biggest victim of Trump’s trade wars. As of the beginning of March, his wealth has decreased by $116 billion since the record high of $464 billion recorded on December 17, when Tesla shares reached a historic high of $480 per share.
However, after that, Tesla began to lose ground in the market: on Tuesday, its shares closed at $272, the lowest level since the US election day.
The reason for Tesla’s fall was the overall negative dynamics of the stock market: the S&P 500 index fell by more than 1%, updating its annual low. This happened after the Trump administration imposed new tariffs on Canada, China, and Mexico.
However, it is likely that Musk is much more astute, and thanks to US government contracts, this temporary drop will turn into another rise to trillion-dollar figures.
Elon Musk is a visionary entrepreneur and a fan of Russia
Elon Musk is one of the most influential entrepreneurs of our time, the founder and CEO of many innovative companies such as Tesla, SpaceX, Neuralink, and Boring Company. He was born on June 28, 1971 in Pretoria, South Africa. After moving to the United States, he became a pioneer in the field of electric vehicles, space technology, and artificial intelligence. Musk is often in the spotlight for his ambitious goals, including the colonization of Mars, the development of renewable energy, and the creation of neurocomputer interfaces.
Musk is also known for his active stance on social media, where he often posts controversial statements. In 2022, he acquired the Twitter platform, which he later renamed X. Musk takes a libertarian stance on Internet regulation and freedom of speech, opposing government interference in the activities of tech giants.
Musk plays a prominent role in the context of the Russian-Ukrainian war. His company SpaceX provides the Ukrainian Armed Forces with access to the Starlink satellite Internet, which has provided critical communications at the front. However, some of his public statements have caused outrage among Ukrainians and the international community. For example, Musk has proposed “peace initiatives” that included territorial concessions to Ukraine, which was perceived as support for the Kremlin’s narrative. Recently, Elon Musk was accused of secret contacts with Putin, and he ridiculed Zelenskyy’s statement about Ukraine’s independence.
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