Tesla Loses $380B as Musk-Trump Friendship Implodes

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Tesla stock crashed 14% in a single day last Thursday, wiping out $150 billion - its biggest one-day loss ever. What caused this financial disaster?

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It started when Elon Musk called President Trump's new tax bill a "disgusting abomination" on X, sparking a public feud between the former allies.

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Trump fired back by threatening to cut "billions and billions" in government contracts and subsidies that benefit Musk's companies.

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Musk escalated the fight, claiming Trump would have lost the 2024 election without his support and suggesting the president "should be impeached."

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The feud couldn't come at a worse time for Tesla, which has already seen car sales drop 20% and profits plunge 70% in the first quarter of 2025.

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Since January, Tesla has lost an astonishing $380 billion in market value, making it the worst-performing major stock of 2025.

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Once ranked 8th globally in market capitalization, Tesla has slipped to 10th place and risks dropping out of the top 10 entirely.

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When asked about reconciling with Musk, Trump responded: "You mean the man who has lost his mind?" adding he was "not particularly" interested.

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Short sellers capitalized on the chaos, pocketing nearly $4 billion from Thursday's crash - their second-largest single-day profit ever.

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All eyes are now on Tesla's upcoming robotaxi launch on June 12. Can this new venture save the company, or will the political feud continue to drive shares down?

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