Tesla Shares Tumble as Elon Musk and Donald Trump Clash
Market Reaction to Musk-Trump Dispute
On Thursday, Tesla's stock experienced a significant decline, closing down by 14.6% as tensions escalated between CEO Elon Musk and former President Donald Trump. The conflict arose after Musk publicly criticized Trump's tax and spending legislation, leading to Trump's disappointment over Musk's remarks.
The discord intensified following Musk's departure from the Trump administration, where he briefly served as head of the Department of Government Efficiency (DOGE). In a surprising turn, Musk alleged that Trump's name appears in the Epstein files, suggesting this is why they have not been disclosed to the public.
In a post on X, Musk provocatively stated, "Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT." He further hinted that the truth would eventually emerge.
Court documents have previously linked several high-profile individuals, including Trump, to convicted sex offender Jeffrey Epstein, who died in a Manhattan jail in 2019. Trump had previously indicated he would support the release of Epstein-related files, but he denied any connection to Epstein in 2024.
Musk's claims came shortly after Trump threatened to revoke government contracts with Musk's companies. In response, Musk announced that SpaceX would begin decommissioning its Dragon spacecraft immediately due to the potential cancellation of contracts.
Trump, on his platform Truth Social, remarked, "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it."
Musk has been vocal against Trump's "big beautiful bill," urging Americans to lobby Congress to "KILL the BILL." Trump expressed surprise at Musk's criticism, stating, "Elon and I had a great relationship. I don’t know if we will anymore."
When addressing Musk's comments on the tax policy, Trump expressed his continued admiration for Musk, stating, "I’d rather have him criticize me than the bill because the bill is incredible. It’s the biggest cut in the history of our country." He emphasized the bill's significance for small businesses and middle-income individuals.