Crash-Tested: Tesla Takes a Hit from Trump and Musk's Meltdown
Elon Musk and Donald Trump's feud sends Tesla into chaos — but markets are betting on a high-stakes reconciliation.

Tesla shares are staging a dramatic comeback, clawing back nearly 7% early Friday after a historic single-day loss that erased more than $150 billion in market value. The stunning whipsaw follows an unprecedented public feud between two of America’s most polarizing figures—Tesla CEO Elon Musk and President Donald Trump. What began as a war of words escalated into market chaos, policy uncertainty, and now, a fragile effort to mend the fallout.
The feud exploded Thursday as Musk took to his platform X, launching a barrage of personal and political attacks on the sitting president. His most explosive claim—that Trump is listed in the infamous Epstein files—sent shockwaves through both Washington and Wall Street. Trump retaliated almost instantly on Truth Social, branding Musk “crazy” and threatening to cancel lucrative federal contracts with Tesla and SpaceX. The reaction from markets was immediate and punishing.
Tesla's 14% plunge marked its worst single-day loss in history, obliterating nearly all the gains it had accumulated since Trump’s reelection. Investors, already jittery about rising competition and upcoming product launches, dumped shares amid fears of escalating political risk. Adding fuel to the fire was Musk’s threat to withdraw SpaceX’s Dragon spacecraft from NASA operations—a statement he later appeared to walk back.
