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Tesla shares tank 14%, market cap takes a $152 billion hit after Elon Musk, President Trump spatMusk, who also happens to be the world's richest man and a significant donor to Donald Trump's Presidential campaign, hit back by saying that Trump would've lost the election without him, the Democrats would have controlled the senate and the Republicans would have been 51-49 in the Senate, according to his response on "X".By Hormaz Fatakia   June 6, 2025, 4:50:28 AM IST (Published)3 Min ReadShares of Electric Vehicle manufacturing company Tesla Inc. fell 14% on Thursday, not because of company-specific issues or fundamentals, but due to its CEO Elon Musk engaging in a public spat with US President Donald Trump over the latter's "One Big Beautiful Bill."

The fall led to a $152 billion knock to Tesla's market capitalisation, taking it below the $1 trillion mark, eventually settling at $916 billion. This is the biggest single-day hit on record to Tesla's market cap.

President Trump accused Musk of "going crazy" and that the One Big Beautiful Bill was in the work for months and Musk knew all along about the contours of the same. "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!” Trump wrote on his Truth Social account.

Musk, who also happens to be the world's richest man and a significant donor to Donald Trump's Presidential campaign, hit back by saying that Trump would've lost the election without him, the Democrats would have controlled the senate and the Republicans would have been 51-49 in the Senate, according to his response on "X".

The President also countered Musk's posts on "X" by saying that the easiest way to save money is to terminate the government subsidies and contracts given to Musk. "I was surprised tat Biden didn't do it," Trump wrote on Truth Social, prompting a response from Musk stating "Go ahead, make my day."

The Tesla chief had earlier called the bill a "disgusting abomination" and that it defeated the very purpose he was brought into the administration to run the Department of Government Efficiency (DOGE).

Musk also went on to write on "X" that the Trump tariffs will drag the US economy into a recession during the second half of the year. He has also been an advocate of lower tariffs in comparison to what the US has imposed on its trading partners to seek better deals.

With this fall, Tesla shares have given up nearly all of the 22% surge they saw during the month of May, when Musk confirmed an end to his stint at DOGE and he would be back devoting more time to his businesses. The stock rallied despite poor quarterly results.

According to an NBC News report, Musk had tried to convince President Trump and other GOP members of the administration to change aspects of the bill that would curtail EV and residential solar tax credits, which are a key profit generator for Tesla. The measures would also impose a $250 fee on EV drivers annually.

With Thursday's fall, Tesla shares are now down 30% from their December 2024 high of $488.54.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsDonald TrumpElon MuskElon Musk TeslaTeslaTesla shares