Tesla and Elon Musk have become embroiled in a high‑profile feud with former President Donald Trump. On June 5, 2025, Tesla shares plunged roughly 14 percent, erasing approximately \$150 billion–\$153 billion in market value.
The root of the dispute? Musk publicly criticized Trump’s proposed tax and spending legislation, prompting Trump to threaten the cancellation of Tesla contracts and subsidies.
Trump accused Musk of hypocrisy—claiming Tesla would not have succeeded without prior support—while Musk countered by calling for Trump’s impeachment and alleging Trump was implicated in Epstein-related documents .
This clash has unsettled investors, raising concerns about regulatory retaliation (especially over Tesla’s planned robotaxi launch and autonomous driving approvals) and deepening political uncertainty.
Despite the turmoil, analysts such as Wedbush maintain a long‑term bullish outlook on Tesla but acknowledge heightened short‑term risks. Tesla’s ambitious self-driving robotaxi service, slated to roll out in Austin, Texas on June 12, could face significant regulatory and market headwinds as a result.
