Elon Musk vs. Trump Feud Sinks Tesla Stock

In early June 2025, a public feud erupted between Elon Musk and President Donald Trump, significantly impacting Tesla’s stock price and investor confidence. This came right a day after weak China sales numbers were released. Insiders had already been unloading shares since the end of May. The CFO and 2 board members unloaded a large amount of shares right before it began to crash. Between them this amounted to over 579k shares being sold, which amounts to over 205 million dollars.

🔥 What Sparked the Feud?

The conflict began when Elon Musk publicly criticized President Trump’s proposed tax bill, calling it fiscally irresponsible. Trump fired back, accusing Musk of opposing the bill because it removed EV tax credits that benefit Tesla. The exchange quickly escalated on social media. Although this seemed to have caused the largest drop it wasn’t the only thing that contributed to the slide.

🐦 Key Tweets from the Feud

“False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!” – Elon Musk

“Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” – Elon Musk

“Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted… and he just went CRAZY!” – Donald Trump on Truth Social

“Go ahead, make my day…” – Elon Musk (responding to Trump’s threat to cancel federal contracts)

 

Tesla Chart Trading View

📉 Impact on Tesla’s Stock

May: Insider Sales Begin

June 4: Weak China Sales Numbers

June 5: Tesla’s stock fell over 14%, wiping out $150 billion in market value.

June 6: The stock rebounded around 6% after signs the feud might be cooling.

🤝 Recent Developments

On June 6, both Musk and Trump suggested they were open to moving past the fight. Analysts credit this shift in tone for helping Tesla shares rebound slightly. Musk seems to have deleted his tweet about Trump and Jeffery Epstein.

🧠 Investor Takeaways

Market Sensitivity: Public clashes between high-profile figures like Trump and Musk can send shock waves through the market. Although the impact on other securities was minimal it did impact the market direction for the day.

Diversification & Hedging: Be sure to diversify your holdings to guard against sector movement that can decimate your portfolio. For example if you were heavily invested in EV companies your portfolio would have suffered greatly. Be sure to hedge your bets and not be afraid to sell out on the way down to buy back in later at a lower price. While Dollar Cost Averaging can be helpful when share prices go down in this instance you could have ended up in a massive hole. It’s difficult to catch a falling knife like Tesla at the bottom. Hedge your bets, especially if they happen to be in the form of options or leveraged shares.

Insider Sales: It’s important to watch for any insider sales, especially from a company you are heavily invested in. Small periodic sales tend to be normal and sometimes planned but when you see multiple insiders unload massive amounts of shares in a short period of time this should be cause for alarm.