Tesla shares plunge as Trump, Musk feud

Tesla shares plunged Thursday after tensions between President Trump and Elon Musk erupted over social media.

What began as Trump responding to Musk’s growing criticism of the president’s tax and spending bill turned into a vicious fight between the president and the world’s richest man.

After Trump ripped his former adviser, Musk claimed Trump would not have won the 2024 election without his support and floated the idea of forming a centrist political party.

Trump then called Musk “crazy” and threatened to scrap billions of dollars in federal contracts with the tech mogul’s companies, which prompted Musk to accuse Trump of being mentioned in classified files regarding Jeffrey Epstein.

Tesla closed with a loss of 14.6 percent as the market closed and the dust settled Thursday afternoon.

The Tesla CEO officially departed the Trump administration last week after a brief but highly controversial tenure.  

The tech billionaire, who began voicing concerns about Trump’s “big, beautiful bill” shortly before his exit, offered biting criticism of the legislation Tuesday, calling it a “disgusting abomination.” He has taken particular issue with the bill’s potential to expand the federal deficit. 

The president responded Thursday, saying he was “very surprised.” 

“Elon and I had a great relationship. I don’t know if we will anymore,” Trump said during an Oval Office meeting with German Chancellor Friedrich Merz. 

“He knew every aspect of this bill. He knew it better than almost anybody. And he never had a problem until right after he left,” he added. “I’m very disappointed in Elon. I’ve helped Elon a lot.” 

Musk fired back quickly, suggesting that Trump “would have lost the election” without him. 

The Tesla CEO spent at least $250 million in the 2024 election boosting Trump’s campaign, earning him a spot in the president’s inner circle and a key role in the administration as head of the newly created Department of Government Efficiency. 

The tech mogul’s government work has weighed heavily on his companies, particularly Tesla, which saw its stock plummet in the early months of the Trump administration. It has recovered in recent weeks as Musk has stepped back from his government work. 

Updated at 4:09 p.m. EDT.