Tesla shares sink 14% following Musk-Trump feud, over $150 billion in market-cap erased

Tesla’s shares have crashed 40 percent from their all-time high.

Shares of electric vehicle player Tesla Inc. cracked 14 percent in trade, erasing over $150 billion in investor wealth, following public feud between the auto player's CEO Elon Musk and U.S. President Donald Trump.

Tesla’s market capitalisation took a massive hit of $152 billion, dragging it below the $1 trillion threshold and closing at $916 billion. This marks the largest single-day loss in the company’s market value on record.

Shares of Tesla settled trade at $284.7 apiece, down 14.3 percent. From its all-time high of $488.54 per share, Tesla's stock has sunk 41 percent.

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Tensions between Trump and Musk exploded into public view earlier today, as the US president said he was "very disappointed" by his billionaire former aide's criticisms and Musk hit back in real time on social media.

"Look, Elon and I had a great relationship. I don't know if we will anymore," Trump told reporters in the Oval Office after Musk slammed his tax and spending mega-bill as an "abomination".

Elon Musk had previously slammed the bill as a “disgusting abomination,” arguing that it undermined the very mission for which he was appointed to lead the Department of Government Efficiency (DOGE).

He had attempted to persuade President Trump and other Republican officials to amend portions of the bill that threatened to reduce tax credits for electric vehicles and residential solar, which are crucial to Tesla’s profitability. The proposed legislation also included a yearly $250 fee for EV owners.

On his social media platform, Truth Social, Trump suggested that Musk was aware about Trump's 'Beautiful, Big Bill' for month. "I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” said Trump.

The world's richest man responded by live-tweeting on his X social media platform as Trump spoke on television, saying that the Republican would not have won the 2024 election without him and slamming him for "ingratitude."