Tesla shares fell 14.3% on Thursday, wiping out $152 billion in market value, following an escalating feud between CEO Elon Musk and President Donald Trump. According to Benzinga, it was the most significant single-day market cap loss in the company’s history. Musk criticized Trump's new spending bill, warning it would drive the U.S. deeper into debt and lead to bankruptcy. Trump criticized Musk on Truth Social, defending the spending bill as one of the greatest ever presented to Congress. Trump suggested cutting government subsidies and contracts with Musk as a potential cost-saving measure. Musk fired back, calling Trump’s EV mandate claims false and hinting at retiring the Dragon spacecraft in protest. Musk proposed forming a new political party representing the "80% in the middle," with 82% of over 1.1 million poll respondents supporting the idea. Tesla stock is down 24.9% year-to-date in 2025.
