After the public conflict between US President Donald Trump and billionaire Elon Musk, shares of the Tesla company suffered a significant drop. Shares of the electric car maker fell 14% after Trump threatened to end government contracts with companies owned by Musk. About this informs Yahoo Finance.
As a result of the collapse, the capitalization of Tesla decreased by 152 billion dollars. The drop was the biggest hit to the company’s market value in its entire history, dropping below the $1 trillion mark and now worth $916 billion.
“Shares fell after the electric car maker posted a 22% gain in May despite weak sales as Musk wrapped up his tenure as head of Trump’s so-called Department of Government Effectiveness (DOGE). Shares are down nearly 18% this week as Musk continues to oppose the budget bill.” – the message says.
Overall, Tesla shares are down nearly 30% this year from a high of $488.54 on Dec. 18. Tensions between Trump and Musk intensified after the latter sharply criticized the former ally’s “great and beautiful” bill. According to media reports, after that they stopped maintaining contact.
On June 5, Donald Trump said during a conversation with journalists:
“I had a great relationship with Elon Musk. I don’t know if we will have it again.”
Later, he wrote on social networks that Musk “has lost his mind.”
In response, Elon Musk accused Trump of appearing in the scandalous “Epstein files”, which is why, in his opinion, these documents have not yet been made public. It is about the American financier Jeffrey Epstein, who was accused of pedophilia and creating a network of sexual exploitation.
