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Home / Business

Trump, Musk in stunning live break-up - Tesla shares lose $252b in value

AFP
5 Jun, 2025 07:43 PM5 mins to read

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President Donald Trump and Elon Musk in the White House on May 30, when their disagreement was still cordial. Photo / Getty Images

President Donald Trump and Elon Musk in the White House on May 30, when their disagreement was still cordial. Photo / Getty Images

Shares in Tesla plummeted more than 14% on Thursday, losing more than US$152 billion ($252b) in market capitalisation, as a spat deepened between US President Donald Trump and Elon Musk, the electric car company’s CEO.

The fall was the EV maker’s largest ever one-day decline, according to Dow Jones Market Data.

Trump said he asked “crazy” Elon Musk to leave his administration and threatened to take away the tech tycoon’s government contracts, as the row over the President’s budget bill triggered a bitter public divorce with his top donor.

Ending Musk’s contracts was the “easiest way to save money.”

Musk said he would begin “decommissioning” his company’s Dragon spacecraft - vital for ferrying NASA astronauts to and from the International Space Station - after Trump threatened to terminate his government contracts.

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“In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately,” Musk wrote on X.

Is it time to create a new political party in America that actually represents the 80% in the middle?

— Elon Musk (@elonmusk) June 5, 2025

The comments came after Trump and Musk’s nearly year-long political alliance imploded in spectacular fashion, with the two trading public insults on social media.

SpaceX’s Crew Dragon -- a gumdrop-shaped capsule that flies atop a Falcon 9 rocket and splashes down in the ocean -- is currently the only US spacecraft certified to carry crew to the ISS under a contract worth more than US$4.9b.

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On X, Musk said Trump would have lost the election without him. He began running a poll on starting his own party.

Tensions between Donald Trump and Elon Musk have exploded into public view 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”.

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.”

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Such an obvious lie. So sad. https://t.co/sOu9vqMVfX

— Elon Musk (@elonmusk) June 5, 2025

In an extraordinary rant as visiting German Chancellor Friedrich Merz sat mutely beside him, 78-year-old Trump unloaded on SpaceX and Tesla boss Musk in his first comments on the issue.

“I’m very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here... All of a sudden, he had a problem,” Trump said when asked about Musk.

The clash comes less than a week since Trump held a grand Oval Office farewell for Musk as he wrapped up his time leading the cost-cutting Department of Government Efficiency (DOGE).

Where is the man who wrote these words?

Was he replaced by a body double!? https://t.co/N4Mliip5U4

— Elon Musk (@elonmusk) June 5, 2025

South African-born Musk, 53, hit back minutes later, saying Trump’s claims he had advance sight of the bill were “false.”

“Whatever,” he added above a video of Trump saying Musk was upset about the loss of subsidies for electric vehicles.

The Republican spending bill would cut US$7500 in tax credits for people who purchase Tesla cars, phase out subsidies for battery factories and lithium refineries and end financial support for electric vehicle charging stations.

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Trump and his Republican allies are also planning to kill regulations that allow Tesla to sell clean air credits to other carmakers that fail to meet environmental standards. During the first quarter, Tesla sold credits worth US$595 million, more than the company’s net profit of US$409 million.

Musk had not seemed to mind. That changed on Thursday, when he wrote on X, ”Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill.”

In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW

— Elon Musk (@elonmusk) June 5, 2025

Musk then ratcheted up the public spat even further, saying the Republican would have lost the election without his support. He was the biggest donor to Trump’s campaign, to the tune of nearly $300 million.

“Without me, Trump would have lost the election,” Musk said on X. “Such ingratitude.”

Tesla shares fell sharply on Wall Street, down eight percent, after his comments, in a sign of the huge stakes for a falling out between the world’s richest man and its most powerful.

‘A little make-up?’

A wistful-sounding Trump took reporters through the break-up with Musk on live television, in what at times sounded more like a therapy session than a meeting with a foreign leader.

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Trump talked about Musk’s farewell appearance in the Oval Office on Friday, when he turned up with a black eye that he said was caused by a punch from his son.

Musk at the time was also facing reports of drug use on the Trump campaign trail.

“You saw a man who was very happy when he stood behind the Oval desk, and even with the black eye. I said, you want a little makeup? We’ll get you a little makeup,” Trump said.

“But he said, ‘No, I don’t think so,’ which is interesting and very nice. He wants to be who he is.”

Trump said he could understand why Musk was upset with some steps he had taken, including withdrawing a nominee to lead the NASA space agency whom the tech tycoon had backed.

Through it all, the visiting German chancellor sat silently.

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Merz had prepared to avoid a repeat of the ambushes that Trump unleashed on the Ukrainian and South African presidents in the Oval Office -- but in the end it was Musk that the US president ambushed.

At the center of the bitter row is Trump’s “big, beautiful bill” on tax and spending.

The centerpiece of his domestic agenda, it aims to continue tax cuts from his first term -- and could define his second term and make or break Republican prospects in the 2026 midterm elections.

Musk however called it a “disgusting abomination” on Tuesday, on the grounds that it will increase the US deficit.

A day later, the magnate called for Republicans to “kill the bill,” and for an alternative plan that “doesn’t massively grow the deficit.”

-Agence France-Presse

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