Musk Loses $34 Billion as Tesla Stock Crashes Amid Trump Feud

Tesla Stock Plummets 14% Amid Musk-Trump Feud: A $34 Billion Loss The ongoing public spat between Elon Musk and President Donald Trump sent shockwaves through the financial markets on June 5th, 2025. Tesla, the electric vehicle giant, experienced a dramatic 14% intraday drop, resulting in a staggering $34 billion loss in Musk's personal net worth. The event unfolded rapidly, with Trump's proposed termination of government contracts and subsidies for Tesla following criticism from a former advisor. The trading volume was exceptionally high, reaching levels unseen since January 30th, 2023, according to Bloomberg News analyst Romain Bostick. "On an intraday basis, this was the worst day for Tesla going back to 2020," Bostick stated. The sheer volume of shares traded—approximately 280 million—underscores the market's volatile response to the unfolding events. This significant drop is particularly noteworthy given the context. Bostick points out that investors typically don't react as strongly to price wars, such as the one sparked by Ford's price cuts on its Mach-E. The fact that Tesla's stock price closed below all its key moving averages raises concerns about the company's leadership, particularly in light of large investor Ross Gerber's gradual reduction of his stake in the company. Gerber's actions indicate a growing concern about management's handling of the situation. The situation highlights the interconnectedness of politics, business, and the stock market, reminding us of the significant impact public figures can have on financial markets. The coming days will be crucial to observe how Tesla navigates this challenge and rebuilds investor confidence.