Catenaa, Thursday, June 05, 2025- Tesla shares dropped by over 10% on Thursday as US President Donald Trump and Elon Musk feuded over the tax bill.
“I’m very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people,” Trump said to reporters in the Oval Office on Thursday. “All of a sudden, he had a problem, and he only developed the problem when he found out that we’re going to have to have to cut the EV mandate.”
“Elon and I had a great relationship. I don’t know if we will anymore. I was surprised,” Trump added.
Tesla shares dropped by 10.2% on Thursday, continuing its losses from the last five days, as Trump and Musk take on each other, and since Musk left the Trump administration.
The world’s richest man, a key figure in the Department of Government Efficiency’s (DOGE) cost-cutting initiative for several months, has blasted the bill, not long after he said he would spend less time in the White House and more time with his companies.
On his social media platform X, Musk has called on Congress members to kill the legislation, calling it a “disgusting abomination.”
“It more than defeats all the cost savings achieved by the DOGE team at great personal cost and risk,” Musk, the largest Republican donor in the 2024 election cycle, said on X on Tuesday.
Musk’s leadership of DOGE and his alignment with the Trump administration have put off some Tesla buyers. Sales of his EVs have slumped in Europe, China and key U.S. markets like California, even as overall electric vehicle purchases continue to grow.
Tesla shares are down 26% this year, including the losses incurred on Thursday. However, the company remains the most valuable automaker worldwide by a considerable margin, with a market value of $1 trillion, significantly surpassing Toyota Motor’s market value of approximately $290 billion. Tesla trades at 140.21 times profit estimates, a steep premium to other Big Tech stocks like Nvidia
