A public feud between former President Donald Trump and billionaire entrepreneur Elon Musk escalated on June 6, 2025, sparking heated debates in both political and financial circles. The dispute between the two high-profile figures has not only captured headlines but also led to a volatile day in the stock market, particularly affecting Tesla’s stock price.
The Start of the Feud
The feud between Trump and Musk began in early 2025, when Musk criticized Trump’s policies on climate change and his administration’s treatment of the tech industry. Musk, a vocal advocate for green technology and environmental sustainability, has frequently clashed with Trump on matters related to renewable energy, electric vehicles, and climate change initiatives.
In a series of public comments, Musk accused Trump of undermining efforts to address climate change, particularly through his support for fossil fuel industries and his opposition to global climate accords. He also expressed frustration with what he saw as Trump’s stifling of innovation in the tech sector.
In response, Trump has repeatedly criticized Musk for his outspoken views, accusing him of being out of touch with American workers and of relying too heavily on government subsidies. Trump also recently suggested that Musk’s companies, particularly Tesla, have been “subsidized by taxpayers” and should not be entitled to the same level of support as other American businesses.
Escalation and Market Impact
On June 6, 2025, the feud took a more public turn when Musk responded to Trump’s criticism by calling for impeachment proceedings against the former president. Musk’s comments were fueled by rumors of Trump’s alleged ties to the disgraced financier Jeffrey Epstein.
In his remarks, Musk criticized Trump’s involvement in the alleged Epstein scandal, claiming that it represented a “clear abuse of power” and a failure to address systemic issues within the government. Musk’s comments immediately caused a stir on social media and in financial markets, with many investors expressing concern about the future of Tesla and other companies connected to Musk.
In response, Trump doubled down on his attacks, accusing Musk of being a “puppet of the Chinese government” and threatening to revoke federal subsidies for Tesla’s electric vehicles, as well as canceling key contracts with SpaceX.
Tesla’s stock plummeted by 14% as a result of these public attacks, wiping out $152 billion in market value. Musk’s net worth also took a hit, with the billionaire losing $33 billion in the span of a few days. The decline in Tesla’s stock had broader implications for the electric vehicle market, as investors began to question the future of Musk’s companies and their ability to navigate increasing political tensions.
The Geopolitical Angle
The Trump-Musk feud has also raised concerns about the broader geopolitical landscape, particularly in relation to the growing influence of China. Both Trump and Musk have significant ties to China, albeit from different perspectives. Trump, during his presidency, took a hard stance on trade with China, while Musk has forged a profitable relationship with Chinese automakers and manufacturers.
The growing animosity between these two influential figures has left investors questioning whether Tesla will face more regulatory scrutiny in the U.S. or encounter obstacles in international markets. Musk’s ability to maintain a delicate balance between political powers in the U.S. and China will be crucial for Tesla’s long-term growth.
As the feud continues to escalate, political observers are left wondering whether this will have lasting ramifications on the market, particularly if both Trump and Musk remain unwilling to engage in reconciliation. Musk’s unpredictable behavior, combined with Trump’s combative political style, is likely to continue keeping investors on edge for the foreseeable future.