While the US President will continue his attempt to push his spending bill through Congress which experts say will increase the federal deficit by $3.8trn (£2.8trn) by 2034, Musk has other things on his mind – repairing his reputation and, to some extent, his business empire.
Shares in the Nasdaq-listed stock plunged 14 per cent as the world’s wealthiest man, and the most powerful, traded blows on the two social media platforms they each own.
But while that’s near enough pocket change to Musk, it’s the wider chaos he has caused his investors that will genuinely trouble him, and them.
As sales from the company’s typically left-leaning customer base plummeted around the world, shareholder Ross Gerber – like other investors – watched in horror as anti-Musk protestors smashed and burnt Tesla showrooms in US-wide protests against Trump’s former “First Buddy”.
After backing Musk’s leadership for more than a decade, Gerber dumped his stock and told Sky News: “There’s no question [Musk] has been committed to his job at the government, that’s where he’s spending his time. He is not running Tesla.
Last month the Wall Street Journal also reported that Tesla had appointed headhunters to begin a search for Musk’s replacement as chief executive.
Tesla sales plunge as EV buyers turn against Musk
Since Musk backed Trump’s campaign to return to the White House with $288m of his own cash, Tesla sales have dropped 13 per cent worldwide in the first three months of 2025, with US deals falling 9 per cent. Despite this, the marques remains the most popular EV choice in America.
Protesters gather at a Tesla dealership in Chicago in March (Photo: Jacek Boczarski/Anadolu via Getty)
Chinese brands, in particular, offer cheaper and, in some cases, more range and better technology than Tesla is currently delivering.
According to the European Automobile Manufacturers Association (ACEA), Tesla sold 42.6 per cent fewer cars in Europe in March than it had the previous year.
After the fallout between Trump and Musk, Tesla investors are keeping their thoughts close to their chests, possibly because as the pair appear to have stopped bickering one minute, another social media post appears to scupper hope of either of them behaving like the grown adults they are supposed to be.
Musk signalled on X that he agreed, and as rumours of a phone call rapprochement between the squabbling duo spread through the market, shares recovered some of yesterday’s losses, rising 5 per cent in pre-trading.
For some, the future success of Tesla could depend on whether Trump and Musk make-up and pinky promise to never, ever break up again.
Tesla’s tax incentive problem
“It might be a bit too hopeful to think their relationship will ever go back to what it once was, but if cooler heads prevail and the tension eases, that would definitely be a big improvement for Tesla,” said company shareholder Matthew Britzman, who is an analyst at Hargreaves Lansdown.
Tesla shares slumped to their worst ever single day performance as Donald Trump and Elon Musk attacked each other (Photo: Liu Junfeng/VCG via Getty)“For now, markets are willing to look past the weakening auto business with AI and automation the real prizes. But with such a pivotal few months ahead for the autonomous strategy, investors will want to see Musk give his full attention back to Tesla.”
As The i Paper revealed last week, Musk is lobbying the UK Government to overhaul a £2bn green energy scheme to allow Tesla access to the lucrative carbon credit market.
Tesla was approached for comment.
That change, if carried out, could pave the way for a significant money spinner and boost Tesla’s woes. Musk may also be hoping for the return to the days of when Trump used to turn the White House lawn into a Tesla showroom.
One thing is certain, Musk needs something positive to go his way if Tesla is to regain its global EV crown.
Read More Details
Finally We wish PressBee provided you with enough information of ( Why Tesla’s $152bn stock plunge is more serious than you think )
Also on site :