Trump-Musk Feud Erupts, Causing Massive Tesla Stock Drop

Tensions between Elon Musk and Donald Trump escalate into a public spat. The conflict began when President Trump criticized Musk during an Oval Office meeting concerning a sweeping tax-cut and spending bill. Musk responded on X, stating that he was never shown the bill and that Trump would have lost the election without his support. Trump then retaliated on Truth Social by threatening to terminate Musk's government subsidies and contracts. This public disagreement caused a significant 14.27% drop in Tesla's stock price, resulting in a US$150 billion loss in market value – the largest single-day decline in Tesla's history. Professor Todd Belt, Director of the Political Management Program at George Washington University, noted a previously existing tension between the two men. Lawrence McGuire, an Oakland resident, commented that such a fallout was expected given the nature of relationships between presidents and high-profile figures. The incident highlights the volatile nature of high-stakes political and business relationships.