Tesla’s stock plunged 14% on Thursday, erasing $152 billion in market value, after President Donald Trump threatened to end government contracts with Elon Musk’s companies.
The drop pushed Tesla’s valuation to $916 billion, below the $1 trillion mark.
The dispute stemmed from Trump’s spending bill, which excluded electric vehicle (EV) credits. “Elon was ‘wearing thin,’ I asked him to leave… and he just went CRAZY!” Trump posted on Truth Social.
Speaking from the Oval Office, Trump said, “Elon and I had a great relationship. I don’t know if we will anymore. I was surprised.” Musk responded on X, saying, “Whatever,” and added, “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.”
Musk has called the bill a “disgusting abomination” and vowed to oppose lawmakers who support it, signaling a break from his former alliance with the administration.