Tesla loses $152 billion in market cap after Musk-Trump spat, biggest hit ever

Tesla's shares plummeted by 14% on Thursday, resulting in an astonishing $152 billion decrease in the company's market capitalization, marking the largest drop in its history. This downturn pushed the electric vehicle manufacturer below the $1 trillion threshold, with its market cap settling at $916 billion. The conflict between Tesla CEO Elon Musk and former President Donald Trump intensified as Trump threatened to withdraw government contracts from Musk's ventures over a contentious spending bill. Trump took to Truth Social to express his frustrations, stating, "Elon was 'wearing thin,' I asked him to leave, and I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted." During an earlier address from the Oval Office, Trump claimed that Musk was disappointed by the exclusion of electric vehicle credits in the spending bill and hinted at a strained relationship moving forward. Musk responded on the social media platform X, asserting, "Without me, Trump would have lost the election," showcasing a shift in his rhetoric towards the administration. As the world's richest individual, Musk's recent comments included threats to challenge lawmakers who support the bill in primary elections, labeling it a "disgusting abomination." This market decline follows a 22% increase in Tesla's stock in May, despite disappointing sales figures. With shares down nearly 30% this year and significantly lower than the peak of $488.54 in December 2022, the company faces mounting challenges. Tesla is grappling with declining electric vehicle sales in Europe and increasing pressure to launch a long-awaited driverless ride-hailing service in Austin, Texas. Additionally, Musk's frustrations extended to the Trump administration's opposition to the nomination of Jared Isaacman to head NASA, further complicating his relationship with the former president. Isaacman, who successfully completed private space missions with SpaceX, had his nomination withdrawn amid these tensions.