### Tesla's Stock Plummets Amid Political Turmoil: The Musk-Trump Feud Tesla Inc. has faced significant turmoil recently, primarily due to a public feud between CEO Elon Musk and former President Donald Trump. This conflict has led to a dramatic decline in Tesla's stock value, with the company losing approximately **$380 billion** in market capitalization in 2025, making it the worst-performing large-cap stock of the year. The clash escalated after Musk criticized Trump's tax legislation, which he labeled a "disgusting abomination," prompting a backlash that has rattled investors and analysts alike [https://www.bloomberg.com/news/articles/2025-06-09/tesla-hit-with-a-pair-of-downgrades-amid-fallout-from-trump-feud]. ### Breakdown of the Situation: Key Segments 1. **Initial Stock Decline**: Tesla shares dropped **14%** in a single trading session on June 5, 2025, following Musk's public criticism of Trump's policies [https://www.fxstreet.com/news/tesla-stock-plunges-14-as-musk-trump-feud-deepens-investor-concerns-202506060939]. 2. **Market Reaction**: The feud has led to a **$152 billion** loss in market cap in just one day, as investors reacted to the potential implications for Musk's various ventures, including SpaceX and X [https://www.moneycontrol.com/world/tesla-s-record-market-crash-deepens-as-trump-musk-fallout-shakes-investors-article-13101779.html]. 3. **Wall Street's Response**: Following the feud, Wall Street analysts downgraded Tesla's stock, reflecting growing concerns about the company's future amidst political instability [https://www.bloomberg.com/news/articles/2025-06-09/tesla-hit-with-a-pair-of-downgrades-amid-fallout-from-trump-feud]. 4. **Investor Sentiment**: The ongoing conflict has sparked investor jitters, with many fearing that Musk's political ambitions and public disputes could adversely affect Tesla's business operations and government contracts [https://www.devdiscourse.com/article/business/3449106-teslas-tumult-amidst-trump-tussle-stock-plunge-sparks-investor-jitters]. ### Supporting Evidence: Key Metrics and Data - **Stock Performance**: - June 5, 2025: Tesla shares fell **14%**, closing at **$284.70** [https://www.fxstreet.com/news/tesla-stock-plunges-14-as-musk-trump-feud-deepens-investor-concerns-202506060939]. - Cumulative loss in 2025: **$380 billion**, marking the largest loss among major companies [https://www.newsbreak.com/reuters-555486/4040367830720-tesla-s-380-billion-wipeout-marks-biggest-2025-loss-among-top-companies]. - **Market Cap Impact**: The company lost **$152 billion** in market cap in a single day due to the feud [https://www.moneycontrol.com/world/tesla-s-record-market-crash-deepens-as-trump-musk-fallout-shakes-investors-article-13101779.html]. - **Analyst Downgrades**: Following the feud, Tesla received multiple downgrades from Wall Street analysts, indicating a shift in market sentiment [https://www.bloomberg.com/news/articles/2025-06-09/tesla-hit-with-a-pair-of-downgrades-amid-fallout-from-trump-feud]. ### Conclusion: The Fallout from the Musk-Trump Feud In summary, the public feud between Elon Musk and Donald Trump has had severe repercussions for Tesla, leading to a significant decline in stock value and investor confidence. The situation can be summarized as follows: 1. **Conflict Origin**: Musk's criticism of Trump's tax legislation triggered the feud. 2. **Immediate Impact**: Tesla's stock plummeted by **14%** in a single day, resulting in a **$152 billion** loss in market cap. 3. **Long-term Concerns**: Analysts have downgraded Tesla's stock, reflecting fears about the company's future amidst political instability. 4. **Investor Jitters**: The ongoing conflict has raised concerns about potential repercussions for Musk's other ventures and Tesla's government contracts. The unfolding situation highlights the intricate relationship between corporate performance and political dynamics, particularly in the case of high-profile figures like Musk and Trump [https://www.bloomberg.com/news/articles/2025-06-09/tesla-hit-with-a-pair-of-downgrades-amid-fallout-from-trump-feud].