The feud between Trump and Musk caused Tesla's stock to crash, with a market value drop of $150 billion.

On Thursday, Tesla's shares fell by $150 billion due to a public dispute between US President Donald Trump and billionaire Elon Musk, CEO of the electric car manufacturer. This was reported by UNN with reference to Reuters.

Investors watched the developments with growing concern about what this clash could mean for Musk's business empire. The automaker's shares ended the day down 14%, losing $150 billion in market value.

It is noted that traders got rid of Tesla shares amid active trading after Musk quickly reacted to Trump's criticism with social media posts criticizing the presidential tax bill.

Trump responded that Musk was upset that the bill eliminates tax breaks for electric car purchases. A version of Trump's budget bill in the House of Representatives proposes to abolish the popular $7,500 electric vehicle subsidy by the end of 2025.

Tesla and other automakers have relied on incentives for years to stimulate demand, but Trump has vowed to phase out the subsidy.

According to J.P. Morgan, Tesla's annual profit could be $1.2 billion, as well as an additional $2 billion from the sale of regulatory credits through separate Senate legislation aimed at restricting electric vehicle sales in California.

Reuters notes that open hostility with Trump could create numerous obstacles for Tesla and the rest of Musk's sprawling business empire. The US Department of Transportation regulates vehicle design standards and will have a major impact on whether Tesla can mass-produce robotaxis without pedals or steering wheels.

Elon's politics continues to hurt the stock. First he teamed up with Trump, which upset many potential Democratic buyers. Now he has turned against the Trump administration

Due to falling electric car sales, Musk has refocused Tesla's future on driverless robotic taxis over the past year. At an earnings conference last year, he said investors "should sell their Tesla stock" if they don't believe the company will solve the technological challenges of self-driving cars.

Wedbush analysts said that artificial intelligence and autonomous driving capabilities could be worth $1 trillion to the company in market value alone. Musk has advocated for a single federal approval process for autonomous vehicles to simplify the current maze of different state regulations.

Without me, Trump would have lost the election - Musk05.06.25, 21:50 • 4215 views

Context Donald Trump said he was disappointed with Elon Musk after he criticized the tax bill. Musk replied that he was not shown the document and called for the removal of unnecessary items.  Subsequently, the confrontation continued.

Donald Trump said that billionaire Elon Musk had gone mad and took away his mandate, which forced everyone to buy his "unnecessary" electric cars. Musk stated that Trump is lying, noting that "it's sad", and launched a vote on creating a new party.