Tesla's exclusion from the $1 trillion market cap club is attributed to the strain between its CEO, Elon Musk, and former President, Donald Trump.
Elon Musk's public spat with President Trump on social media sent Tesla (TSLA) shares plummeting on Thursday, June 5, 2025. The falls erased over $150 billion from Tesla's market capitalization, dropping its market value to about $913 billion.
The dramatic stock decline came after Musk criticized President Trump's One Big, Beautiful Bill Act. He called it a "disgusting abomination" and urged followers to tell senators to scrap the bill. Musk had resigned from his role in the Trump administration's cost-cutting Department of Government Efficiency the previous week.
Trump responded to Musk's criticism by stating that he was "very disappointed," insisting he would have won the November 2025 election without Musk's and other Republicans' financial support. Trump later took to Truth Social to label Musk "CRAZY" and threaten to cancel Musk's government contracts.
The stormy relationship between Musk and Trump isn't a 2020 phenomenon. In 2020, Tesla's stock experienced significant volatility due to the COVID-19 pandemic, market fluctuations, and controversy surrounding Musk. However, a substantial stock decline on a specific Thursday in 2020 cannot be found in the available data.
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- The market capitalization of Tesla's token (TSLA) and its overall value dropped significantly due to the recent downturn in the stock-market, erasing over $150 billion from its market cap, now standing at approximately $913 billion.
- The volatile stock market trends, coupled with controversies surrounding Elon Musk, had previously impacted Tesla's shares in 2020.
- In recent years, Musk's engagement in politics, such as his criticism of President Trump's policies and his resignation from the Department of Government Efficiency, has played a role in the financial performance of his business ventures.
- Social media platforms like Truth Social have served as battlegrounds for the public exchanges between political leaders and business tycoons, such as the recent spat between Elon Musk and President Trump.
- The financing sector, including initial coin offerings (ico), has seen various changes in response to volatile market conditions and regulatory updates.
- As technology advances, it has played a crucial role in the interconnectivity of financial markets, social media, business operations, and even entertainment platforms.
- General news outlets and financial publications continue to cover a wide range of topics, including technological innovations in gadgets like smartphones, economic indicators, political developments, and entertainment industry updates.
