Tesla quotes collapsed after Trump's skirmish with Musk

Tesla shares fell sharply on Thursday, June 5: securities fell by $33.18 to $298.87 per share, which was the lowest level in almost a month. At the same time, the trading volume exceeded 147 million shares. The company lost about 9% of its capitalization in one day. This is confirmed by the portal data Investing.ru .

The financial condition of entrepreneur and former head of the Department of U.S. Government Efficiency (DOGE) Elon Musk, according to Forbes magazine, also declined sharply: he lost $17 billion in a day, and his total capital dropped to $398 billion. Most of the losses occurred after Musk and US President Donald Trump exchanged insults.

The political tension intensified after Musk, who heads the government's Department of Efficiency (DOGE), criticized Trump's new bill. The document cancels subsidies for electric vehicles, but retains benefits for oil companies and imposes duties on batteries from China. Musk initially supported the initiative, but later called it "a blow to the future of electric vehicles." This caused concern among investors, as Tesla is directly dependent on government support and stable conditions for the development of technology.

As Forbes journalists note, against the background of a stable market, the decline in Tesla shares looks especially sharp — now the company's securities are trading 38% below their peak value recorded in December 2024.

On the same day, Musk sharply criticized Trump after his words about disappointment in the billionaire. In addition, he reacted sharply to Trump's words that Musk had previously had nothing against the budget bill, and a negative attitude arose only after he learned about the government's decision to reduce the mandate for electric vehicles.

The day before, Musk called the budget bill proposed by the Trump administration an abomination and urged congressmen not to vote for it.