ADVERTISEMENT
TechEconomy
Friday, June 6, 2025
No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Podcast

Home » Tesla Loses $150 Billion in Market Value as Musk’s Clash with Trump Escalates

Tesla Loses $150 Billion in Market Value as Musk’s Clash with Trump Escalates

Joan Aimuengheuwa by Joan Aimuengheuwa
June 6, 2025
in Mobility
0
Tesla Loses $150 Billion in Market Value as Musk’s Clash with Trump Escalates
Elon Musk

Elon Musk

RelatedPosts

Tesla Becomes 2025’s Worst-Performing Big Tech Stock as Musk–Trump Feud Drags On

Tesla Becomes 2025’s Worst-Performing Big Tech Stock as Musk–Trump Feud Drags On

June 6, 2025

Tesla Shares Rise Slightly After Political Clash, But Risks Remain

June 6, 2025

Tesla shares crashed 14% on Thursday, erasing $150 billion in market value, as CEO Elon Musk and U.S. President Donald Trump clashed publicly over tax policy, electric vehicle subsidies, and government contracts.

No company-specific announcements were made that day, the market reaction was triggered solely by political drama.

The breakdown between Musk and Trump, once political allies, has now become a source of instability for Tesla, just as the company is trying to overcome slower EV demand and regulatory issues.

In a series of retaliatory exchanges, Musk criticised Trump’s newly proposed budget bill, which threatens to eliminate electric vehicle tax incentives. Trump fired back, accusing Musk of personal bias and threatening to cancel all federal contracts and subsidies benefiting his businesses.

“The easiest way to save money in our Budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts,” Trump wrote on his Truth Social platform.

This was an indirect message to investors, Musk’s business empire, including Tesla and SpaceX, is under political issues.

As it stands, Tesla faces at least three challenges: potential withdrawal of EV incentives, a drop in regulatory credit revenue, and greater issues with its self-driving technology.

The U.S. Transportation Department has already begun reviewing Tesla’s “Full Self-Driving” software following a fatal crash. The National Highway Traffic Safety Administration (NHTSA) has confirmed it is “actively engaged in developing a multi-faceted regulatory framework” for autonomous vehicles, which could impact Tesla’s driverless vision.

Tesla’s robotaxi programme, Musk’s central pitch to investors, may be directly impacted. The company insists it can operate fully autonomous vehicles using only cameras, without radar or lidar sensors.

But that approach is controversial. Some analysts believe federal regulators could introduce rules mandating additional sensor technology. If that happens, Tesla would be forced to overhaul its self-driving systems.

“Federal regulators might devise rules requiring lidar, which would hurt Tesla,” said Morningstar analyst Seth Goldstein. “With President Trump, being on his bad side always creates risk that you’re going to get personal retaliation.”

I’ve seen Tesla bounce back from market shocks before, but this feels different. The political environment has changed, and Tesla now finds itself caught in the crossfire.

Dennis Dick, a shareholder and strategist at Stock Trader Network, told Reuters: “Elon’s politics continue to harm the stock. First, he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration.”

Trump’s budget bill also proposes cutting the $7,500 federal EV subsidy by the end of 2025. Tesla, along with other automakers, has relied heavily on such incentives to drive adoption.

Analysts at J.P. Morgan estimate that if the bill passes, Tesla could lose up to $1.2 billion annually from reduced vehicle sales, along with an additional $2 billion hit from declining regulatory credit sales.

Even more concerning for investors is how this feud affects Tesla’s standing in Washington. Transportation Secretary Sean Duffy has pushed for regulatory reform around autonomous driving, and up until recently, Musk’s companies were seen as central to federal innovation plans. But Musk’s public attacks on Trump’s “big beautiful bill” may have jeopardised that influence.

Ross Gerber, CEO of Tesla investor Gerber Kawasaki, said, “Every benefit that was perceived he would have got now turns into a negative.”

Musk’s personal wealth also took a hit, down $27 billion in a single day, now reportedly sitting at $388 billion according to Forbes. Tesla’s valuation, while still leading globally at $1 trillion, may no longer feel as untouchable. Toyota, its closest rival, stands at a more modest $290 billion.

The political issue Musk took by endorsing Trump in 2024, initially rewarded with a stock surge of 169%, has now reversed. Since December, shares have tumbled 54%, dragged by protests, falling sales in Europe and China, and cooling sentiment in major U.S. markets like California.

There’s still long-term value in Tesla’s core technology. But for now, the market is wondering if Tesla can survive politically weaponised disruption.

“I am short Tesla. I don’t understand it. I don’t understand its valuation. I don’t understand its fundamentals. I think it’s overhyped,” said Bob Doll, chief investment officer at Crossmark Global Investments.

Loading

Advertisements
MTN ADS

0Shares
Tags: Autonomous VehiclesDonald TrumpElon MuskEV subsidyMusk Trump feudTESLATesla newsTesla regulationTesla Stock
Previous Post

Sierra Leone Fintech Forum 2.0 | Interswitch Leads Financial Inclusion Drive

Next Post

TD Africa Deepens Strategic Ties with Dell Technologies in High-Level Executive Visit

Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

Related Posts

Tesla Becomes 2025’s Worst-Performing Big Tech Stock as Musk–Trump Feud Drags On
Mobility

Tesla Becomes 2025’s Worst-Performing Big Tech Stock as Musk–Trump Feud Drags On

by Joan Aimuengheuwa
June 6, 2025
0

With Musk openly feuding with Republican leadership, analysts are concerned that political issues could hurt demand in key markets

Read more
Tesla Shares Rise Slightly After Political Clash, But Risks Remain

Tesla Shares Rise Slightly After Political Clash, But Risks Remain

June 6, 2025
Glovo launches in Port Harcourt

Glovo Drives N71 Billion Revenue Surge for Nigerian SMEs

May 30, 2025
EBOCAb LAUNCH IN EBONYI STATE

Ebonyi Launches EBOCAB e-Hailing Taxi Service

May 28, 2025
Uber Freight Launches AI Tools to Tackle Supply Chain Challenges

Uber Freight Launches AI Tools to Tackle Supply Chain Challenges

May 21, 2025
Bolt for Corporate and SME

BOLT: Survey Reveals Commuting’s Deep Impact on Daily Life, Mental Health

May 20, 2025
Next Post
TD Africa and Dell Technologies

TD Africa Deepens Strategic Ties with Dell Technologies in High-Level Executive Visit

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Techeconomy Podcast

Techeconomy Podcast
Techeconomy Podcast

Infowave is brought to you by TechEconomy. Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

Follow us @techeconomyng for more.

TECH TALK EPISODE 2
byTecheconomy

PRODUCTIVITY AND WORK-Life Balance

TECH TALK EPISODE 2
TECH TALK EPISODE 2
May 22, 2025
Techeconomy
CYBERSECURITY ESSENTIALS
April 24, 2025
Techeconomy
Digital Marketing Trends and strategies for 2025 and beyond
February 27, 2025
Techeconomy
Major Lesson for Techies in 2024 and Projections for 2025
December 6, 2024
Techeconomy
Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
November 26, 2024
Techeconomy
Maximizing Profitability Through Seasonal Sales: Strategies For Success
November 8, 2024
Techeconomy
Techeconomy Business Series
October 15, 2024
Techeconomy
PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
May 30, 2024
Techeconomy
Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
February 9, 2024
Techeconomy
The Role of Ed-tech in Life Long Learning and Continuous Education
October 19, 2023
Techeconomy
Search Results placeholder

WHAT IS TRENDING

https://www.youtube.com/watch?v=g_MCUwS2woc&list=PL6bbK-xx1KbIgX-IzYdqISXq1pUsuA4dz

Follow Us

  • About Us
  • Contact Us
  • Careers
  • Privacy Policy

© 2025 Techeconomy - Designed by Opimedia.

No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS

© 2025 Techeconomy - Designed by Opimedia.

Translate »
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.