With Musk alienating Republicans, there is no one left to prop up consumer sentiment towards Tesla, which could lead towards a full-scale collapse in brand perception.
Evan Roth Smith
political strategist and co-founder of Slingshot Strategies
Key Facts
- Trump publicly feuded with Elon Musk, criticizing him and threatening to terminate SpaceX government contracts and subsidies worth hundreds of millions.
- Tesla shares plunged more than 14% in one session, wiping out over $150 billion in market value amid the feud between Musk and Trump.
- Musk criticized a spending bill that would add trillions to the national debt and eliminate EV tax credits, which are crucial government incentives for Tesla.
- Tesla's global EV sales declined 13% in Q1 2025 from a year earlier, with sharper drops in Europe and China despite overall EV market growth.
- Tesla shares partially recovered, rising nearly 4% after the steep fall, but the truce between Trump and Musk remained uncertain.
- The S&P 500 rallied past 6,000 as investor hopes grew for a cooldown in the acrimonious feud between President Trump and Elon Musk.
- Tesla stock is down 26.9% year-to-date, with concerns about brand perception and consumer sentiment amid Musk alienating Republicans.
Key Stats at a Glance
Tesla stock plunge in one session
14%
Market value wiped out in Tesla shares
$150 billion

Tesla global EV sales decline in Q1 2025
13%
Tesla shares partial recovery after steep fall
4%
Market value wiped out in previous session
$152 billion
Tesla stock year-to-date decline
26.9%
S&P 500 index level
6000 points
