Winning Bizness Desk
Mumbai. Elon Musk suffered a major financial blow as Tesla’s valuation dropped by $13 billion in a single day, following a sharp verbal attack by US President Donald Trump. In a fresh jibe, Trump threatened to deport Musk to South Africa over the ongoing dispute about electric vehicle (EV) subsidies. This latest clash marks a new low in their growing feud, turning what was once seen as a strategic relationship into a bitter public rivalry.
Trump targets Musk's government support
Trump took to Truth Social and claimed that without federal subsidies, neither Tesla’s EV production nor SpaceX's rocket launches would be possible. He alleged that Musk has received more government money than any other individual and called on the Department of Government Efficiency (DoGE) to investigate the matter. Trump emphasized that supporting EVs is acceptable, but mandating them goes against free choice.
Tesla stock faces repeated hits
Tesla’s share price dropped over 5% on Wednesday, reflecting a sharp market reaction to the controversy. Over the past month, Musk has seen Tesla's valuation erode by around $32 billion due to continuous pressure stemming from this feud. On June 5, 2025, when their conflict first turned public, Tesla’s shares plunged 14%, leading to a personal loss of $34 billion for Musk — his worst single-day fall since 2021, according to the Bloomberg Billionaires Index.
Musk pushes back on subsidy claims
Responding to Trump’s remarks, Musk rejected the accusations and said he’s in favor of removing all government subsidies immediately. He brushed off Trump’s deportation comment, saying if the US is serious about reducing unnecessary spending, the best step would be to stop subsidies across the board. Musk also warned that political interference with tech companies could hurt the country’s innovation ecosystem.
Clash began over 'Big Beautiful Bill'
The root of their current fallout traces back to their opposing views on the ‘Big Beautiful Bill’, a major economic package pushed by Trump. While Trump supports the bill, claiming it boosts investment and cuts reliance on China, Musk labeled it as wasteful and packed with “pork-barrel spending.” Their disagreement since then has spiraled into wider attacks on each other’s roles in policy and business.
Trump and Musk relationship breaks down
Once working closely on economic reforms and innovation strategies, Trump and Musk now appear locked in a deepening power struggle. With legal probes, political threats, and market volatility growing, the feud between the two influential figures is shaping not only Musk’s business empire but also America's approach to industrial policy.
7 Key Pointers:
- Elon Musk lost $13 billion in one day after Trump’s deportation threat.
- Tesla's total loss in a month now stands at $32 billion.
- Trump blamed Musk for taking excessive government subsidies.
- He asked DoGE to probe Musk’s EV support funding.
- Musk responded by demanding an end to all subsidies.
- The two first clashed over the ‘Big Beautiful Bill’.
- The rivalry is now affecting markets, policies, and public discourse.
