Tesla’s Wild $150 Billion Meltdown: Inside the Trump-Musk Power Struggle Shaking Wall Street in 2025
Elon Musk and Donald Trump’s public clash wipes over $150B off Tesla as looming GOP tax cuts threaten the EV giant’s future.
- $150+ billion: Tesla’s market value erased in a single day
- 6% rebound: Tesla shares partially recovered after tensions cooled
- EV tax credits at risk: New legislation could gut Tesla’s sales engine
- New government agency: Musk exited DOGE after slashing billions in waste
Wall Street was left reeling Thursday as Tesla shares nosedived by over $150 billion following a headline-grabbing feud between President Donald Trump and tech titan Elon Musk. The high-stakes spat reached a boiling point after Musk blasted the GOP’s sweeping spending bill—and Trump fired back furiously online.
Adding fuel to the fire, investors panicked over the escalating political risk intertwined with one of the world’s most-watched companies. By midday Friday, a modest bounce erased some losses, but wary analysts like Gerber Kawasaki’s Ross Gerber warned this may only be the beginning of Tesla’s turbulence.
What Sparked the Trump-Musk Showdown?
The tension boiled over after Musk unleashed a scathing critique of Trump’s ambitious tax plan, branding it a fiscal disaster. Musk had, until recently, been a key Trump ally—publicly backing the former president’s campaign and injecting millions into Republican fundraisers.
That partnership morphed into a formal Washington role when Trump appointed Musk to lead the new Department of Government Efficiency (DOGE). Musk’s cost-cutting crusade at DOGE claimed billions in taxpayer savings. But after Musk resigned last month, his support for Trump’s agenda quickly soured.
How Will Tesla Weather the EV Tax Credit Storm?
Analysts warn that Trump’s bill, if signed into law, could eliminate federal EV tax credits—depriving Tesla of a vital sales lifeline. As the legislation races through the Senate, industry experts caution this “death blow” could decimate Tesla’s U.S. orders unless urgent lobbying efforts prevail.
To follow the breaking details around tax legislation and EV incentives, visit Tesla and White House.
Who’s Winning the Musk-Trump Power Play?
If Thursday’s market reaction is any clue, both sides have suffered bruising losses. Tesla’s enormous drop—followed by a shaky partial rebound—shows Wall Street’s unease with the billionaire infighting. Even Musk’s legendary brand power couldn’t fully blunt investor fears over an uncertain political future.
Meanwhile, Trump’s furious base welcomes his hard stance—yet risks alienating pro-business factions aligned with Musk’s innovation streak. The coming weeks could determine if Musk regains favor or if Tesla faces further headwinds as this political soap opera drags on.
What Happens Next? Your Guide to Navigating the Fallout
With the Senate poised to take up Trump’s tax bill before July 4, investors and drivers should brace for more twists. If EV tax credits vanish, expect major pressure on Tesla’s sales and some wild swings on Wall Street.
For broader financial news on the market turmoil, see Nasdaq or Reuters.
Stay ahead of the curve—track every move in the Trump-Musk saga and protect your investments!
- Monitor upcoming Senate votes on the GOP tax bill
- Review Tesla’s strategies on alternative incentives
- Keep tabs on both leaders’ public statements via social and news outlets
- Consult financial advisors for real-time portfolio guidance
