Tesla Inc. (TSLA) experienced a significant stock price decline, dropping 14% to $284.70 on June 5, 2025, resulting in a loss of approximately $150 billion in market capitalization. This sharp downturn was triggered by an escalating public feud between CEO Elon Musk and President Donald Trump. The dispute centers around a proposed GOP tax bill that aims to eliminate electric vehicle (EV) tax credits, potentially impacting Tesla’s profitability. Investor concerns over potential regulatory repercussions and the loss of federal contracts contributed to the sell-off. In response to the situation, efforts are underway to ease tensions, including a scheduled call between Musk and Trump.
