Tesla Shares Drop 17%, Lose $100 Billion Market Cap Amid Musk-Trump Clash
- Lyla Velez
- June 6, 2025
- Uncategorized
- 0 Comments
Key Takeaways:
- Main event involves a public clash between Musk and Trump.
- Significant financial impact with over $100 billion lost.
- Ripple effects on tech and crypto markets observed.
Tesla shares fell sharply, dropping 17% and losing over $100 billion in market value on the New York Stock Exchange after a public dispute between CEO Elon Musk and U.S. President Donald Trump.
The dispute between Elon Musk and Donald Trump has major implications for Tesla’s market presence. This has caused significant market instability, affecting related industries like tech and crypto.
In a heated exchange, Elon Musk criticized a mega-tax relief bill, prompting a reaction from President Trump who threatened to cancel government subsidies to Musk’s companies, including Tesla and SpaceX. The public feud has impacted Tesla’s stock value significantly.
“I may cancel government subsidies and contracts with your companies, including Tesla and SpaceX.” – Donald Trump, Former President of the United States
The confrontation led to the largest one-day drop in Tesla’s shares, rattling the broader tech and crypto markets. Bitcoin and Ethereum experienced volatility as traders react to the situation, highlighting the interconnectedness of these markets.
The clash between Musk and Trump underscores the broader implications for companies reliant on government contracts. Immediate effects were observed in both stock and crypto markets, with increased volatility in tech and digital currencies.
Financial analysts and market participants are now examining the potential outcomes of this clash. Past events suggest such geopolitical tensions may lead to increased regulatory scrutiny, particularly affecting high-growth tech sectors.
The unfolding situation is being closely monitored by both traditional and crypto investors. Market behavior reflects a shift towards risk avoidance, a pattern consistent with previous large-scale tech sell-offs, transcending both stock and digital currency markets. Historical data shows correlated downturns in tech and crypto assets following tech stock sell-offs.
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