Tesla share plunge amid Trump feud wipes $8.73bn off Elon Musk’s net worth

TruthLens AI Suggested Headline:

"Elon Musk's Net Worth Drops $8.73 Billion as Tesla Shares Fall Amid Trump Feud"

Tesla share plunge amid Trump feud wipes $8.73bn off Elon Musk’s net worth analysis cover image The Guardian 7.1
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Original Article Source: https://www.theguardian.com/technology/2025/jun/05/tesla-share-drop-trump-musk-feud
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TruthLens AI Summary

Tesla's shares experienced a significant drop of approximately 14.2% at market close on Thursday, largely attributed to a public feud between Elon Musk and Donald Trump. This decline reduced the company's market value to around $900 billion, causing a notable decrease of $8.73 billion in Musk's net worth, as reported by the Bloomberg Billionaires Index. The conflict escalated as both men exchanged threats and insults on their social media platforms. Trump hinted at the possibility of cutting government subsidies and contracts that benefit both Tesla and SpaceX, while Musk retaliated by threatening to decommission SpaceX's spacecraft used for NASA transport missions and called for Trump's impeachment, among other accusations. This public spat comes at a time when Tesla has already faced challenges throughout the year, including declining sales and investor concerns regarding Musk's political associations, which have negatively impacted buyer sentiment towards the automaker.

The feud represents a dramatic shift in the relationship between Musk and Trump, who had previously collaborated closely. Musk's financial contributions to Trump's 2024 presidential campaign, totaling around $275 million, and his role in the administration's “department of government efficiency” (Doge) had solidified their alliance. However, tensions began to surface after Musk expressed opposition to a new tax bill that would eliminate electric vehicle tax credits, which he viewed as detrimental to his business interests. The timing of this rift is particularly critical for Tesla, as the company is on the verge of launching a self-driving robotaxi in Austin, a venture that is contingent on receiving government regulatory approval. The ongoing feud could lead to increased scrutiny from investors, raising concerns about potential repercussions for Musk's businesses, including the risk of canceled government contracts or heightened regulatory oversight in the future.

TruthLens AI Analysis

The article provides an overview of a significant financial impact on Tesla shares following a public feud between Elon Musk and Donald Trump. The confrontation has implications not only for Musk's personal wealth but also for Tesla's market position and investor sentiment.

Implications of the Feud

The drop in Tesla's share price, attributed to the public spat between Musk and Trump, reflects the potential volatility in the stock market related to political tensions. As Tesla's value diminished, Musk's net worth decreased significantly, highlighting how closely tied the fortunes of high-profile executives can be to their companies' stock performance. The feud itself centers on government subsidies and contracts, which are crucial for both Tesla and SpaceX, thus raising concerns about future funding and regulatory scrutiny.

Public Perception and Sentiment

The article suggests that this conflict could further alienate Tesla from consumers who might already be hesitant due to Musk's political associations. The framing of the feud, with Musk threatening to decommission vital government contracts, could instill fear among investors about the stability of Musk's business ventures. Such narratives can lead to panic selling or increased short-selling in the market, further affecting stock prices.

Potential Hidden Agendas

While the feud is portrayed as a spontaneous escalation, it may reflect broader strategic positioning by both parties. Musk's criticism of Trump’s tax policies could signal a shift in his public persona, distancing himself from Trump to appeal to a different consumer base, particularly those who prioritize environmental issues. Conversely, Trump’s threats to cut subsidies may be an attempt to reassert control over his political allies and their financial dependencies.

Manipulative Elements of the Narrative

The language used in the article hints at manipulation through its portrayal of the feud as a dramatic and unexpected escalation. This framing can sensationalize the situation, potentially diverting attention from other pressing issues, such as Tesla's declining sales and market competition. The focus on personal insults and threats may serve to distract the public from the fundamental business challenges Tesla faces.

Impact on Markets and Communities

This news could have ripple effects on stock markets, particularly for companies in the automotive and tech sectors. Investors might react not only to the immediate fallout from this feud but also to the underlying tensions in the political landscape that could affect future government contracts. Communities that support environmental initiatives may feel conflicted about their support for Musk, given the negative political implications of his actions.

Audience Targeting

The article likely resonates with a politically aware audience, particularly those interested in the intersections of business and politics. It may appeal to those who follow tech industry trends closely, as well as financial analysts monitoring stock movements in response to political developments.

In conclusion, the article paints a picture of volatility in the Tesla stock price tied to the personal feud between Musk and Trump. While it reflects real market reactions, the framing may also serve specific agendas. Overall, the reliability of this news can be seen as moderate; it reports factual occurrences but might lean towards sensational narratives that could skew public perception.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/technology/2025/jun/05/tesla-share-drop-trump-musk-feud

Tesla’s shares dropped by about 14.2%on Thursday at market close as a feud between Elon Musk and Donald Trump erupted into public view, decreasing the value of the company to roughly $900bn. Theformer political alliestraded threats and insults through posts on their respective social media platforms throughout the afternoon as the company’s price fell.

Trump suggested on Truth Social that he could cut Musk’s government subsidies and contracts, of which bothTeslaand SpaceX have been immense beneficiaries. Musk meanwhile threatened to decommission the SpaceX spacecraft that Nasa relies on for transport missions, called for Trump’s impeachment, derided the president’s signature tariffs and accused him of being affiliated with the notorious sex offender Jeffrey Epstein.

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The decline in Tesla’s share price on Thursday knocked about $8.73bn off Musk’s total net worth,according to the Bloomberg Billionaires Index. Tesla has struggled throughout the year amid declining sales and buyers around the world rejecting the automaker due to Musk’s association with far-right politics. Stock traders who had shorted Tesla shares made billions amid the spat, perthe Wall Street Journal.

The blow-up is an unexpected and dramatic escalation of a growing rift between two of the world’s most powerful men. Musk had donated about $275m to Trump’s 2024 presidential campaign and served as the leader of the cost-cutting “department of government efficiency” (Doge) for months at the president’s beck and call. It also puts increased investor scrutiny on how the clash could affect Musk’s business empire, with his companies such as Tesla facing potential retribution in the form of canceled government deals or increased regulatory oversight.

The rift began after Musk recentlyopposed the administration’s new taxbill that eliminates electric vehicle tax credits and would add an expected $2.3tn to the deficit, in effect nullifying the limited “savings” Doge claimed to find. Musk was also reportedly upset about being increasingly iced out of the Trump administration and having the nomination of his preferred candidate to lead Nasa pulled.

Musk and Trump’s feud also comes at a particularly sensitive time for Tesla as it seeks to build a self-driving robotaxi, set to debut in Austin next week. Musk has hinged the company’s future on the product, but it willdepend on approvalfrom government regulators to ever become commercially viable.

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Source: The Guardian