### Tensions Rise: The Fallout from the Musk-Trump Feud and Its Impact on Tesla Shares The recent public fallout between President Donald Trump and Elon Musk has sent shockwaves through the stock market, particularly affecting Tesla's share value. Investors are grappling with the implications of this high-profile dispute, which has resulted in significant fluctuations in Tesla's stock price. The feud began when Musk criticized Trump's tax policy, leading to a dramatic selloff that wiped out approximately $380 billion in Tesla's market value. As tensions have eased, however, Tesla shares have started to recover, reflecting a complex interplay of investor sentiment and political dynamics. ### Breakdown of the Situation: Key Segments of the Musk-Trump Feud 1. **Initial Fallout**: The feud ignited when Musk publicly criticized Trump's tax bill, labeling it a "disgusting abomination," which led to a sharp decline in Tesla's stock price, losing $380 billion in market value [https://www.business-standard.com/companies/news/elon-musk-vs-donald-trump-tesla-stock-fall-380-billion-spacex-backlash-125060700359_1.html]. 2. **Trump's Response**: In a series of interviews, Trump declared his relationship with Musk over, warning of "serious consequences" if Musk were to support Democratic candidates [https://www.financialexpress.com/world-news/trump-says-musk-relationship-over-warns-of-serious-consequences-if-he-funds-democrats/3872242]. 3. **Market Reaction**: Following the initial selloff, Tesla shares began to rebound as tensions appeared to ease, with a notable 5.67% increase in stock value on June 11, 2025 [https://www.benzinga.com/markets/equities/25/06/45880572/tesla-stock-rally-continues-as-share-value-gains-amid-easing-tensions-between-trump-and-elon-musk]. 4. **Investor Sentiment**: Local investors expressed concern over the volatility of Tesla shares, reflecting broader anxieties about the implications of political disputes on corporate performance [https://www.rnz.co.nz/news/business/563736/concerned-about-your-tesla-shares-you-re-not-alone]. ### Supporting Evidence: Stock Performance and Market Data - **Stock Price Fluctuations**: - **Initial Drop**: Tesla's stock fell nearly 15% during the height of the feud, resulting in a loss of $380 billion in market capitalization [https://www.storyboard18.com/brand-marketing/tesla-sheds-380-billion-in-value-posting-largest-market-loss-of-2025-69220.htm]. - **Recent Recovery**: As of June 11, 2025, Tesla shares closed at $326.09, marking a recovery of 5.67% from previous lows [https://www.benzinga.com/markets/equities/25/06/45880572/tesla-stock-rally-continues-as-share-value-gains-amid-easing-tensions-between-trump-and-elon-musk]. - **Investor Concerns**: Local investors are increasingly worried about the potential long-term impacts of the Musk-Trump feud on Tesla's business operations and stock performance [https://www.rnz.co.nz/news/business/563736/concerned-about-your-tesla-shares-you-re-not-alone]. ### Conclusion: Navigating the Aftermath of the Musk-Trump Dispute 1. **Impact on Tesla**: The feud has led to significant volatility in Tesla's stock, with a dramatic initial selloff followed by a recent recovery as tensions have eased. 2. **Political Implications**: Trump's public severance of ties with Musk raises questions about the future of Tesla's political support and potential ramifications for its business operations. 3. **Investor Outlook**: While recent gains in Tesla's stock may provide some relief, ongoing concerns about the stability of the company's market position remain prevalent among investors. In summary, the Musk-Trump feud has created a turbulent environment for Tesla, with significant implications for its stock performance and investor confidence. As the situation evolves, stakeholders will need to closely monitor both political developments and market reactions to navigate this complex landscape [https://www.financialexpress.com/world-news/trump-says-musk-relationship-over-warns-of-serious-consequences-if-he-funds-democrats/3872242, https://www.benzinga.com/markets/equities/25/06/45880572/tesla-stock-rally-continues-as-share-value-gains-amid-easing-tensions-between-trump-and-elon-musk].