This week in EV news, Elon Musk and Donald Trump went head-to-head, and the markets felt every punch.
Tesla’s stock took a nosedive this week after a very public spat between Elon Musk and Donald Trump over EV policy. The clash? A proposed rollback of EV tax credits. The fallout? Tesla’s worst single-day market loss ever.
Here’s how it unfolded.
What Sparked the Fight?
Tuesday, June 3
Elon Musk publicly slammed a piece of legislation introduced by Trump—nicknamed the “One Big Beautiful Bill”, which includes a proposal to eliminate the federal $7,500 EV tax credit. Taking to X (formerly Twitter), Musk called the bill a “disgusting abomination,” warning it would “crush American manufacturing leadership in electrification.”
Wednesday, June 4
President Trump responded during a campaign event, expressing disappointment in Musk’s comments. He claimed Musk had previously reviewed the bill and suggested he knew what was coming. Trump also hinted at reassessing federal contracts with Musk’s companies, such as SpaceX
Thursday, June 5
The feud escalated when Trump threatened to cut off government subsidies and contracts to Musk-led companies, suggesting it would save “billions and billions of dollars.”
In response, Musk briefly announced plans to decommission SpaceX’s Dragon program, citing the uncertainty around federal support. (Note: Musk walked back this decision shortly after.)
That same day, Tesla’s stock dropped 14.2%, wiping out roughly $150 billion in market value marking the largest single-day loss in the company’s history.
Friday, June 6
With markets on edge, news surfaced that the White House is now trying to de-escalate the situation. Reports say aides are arranging a call between Musk and Trump. Tesla shares rebounded slightly in early trading, rising about 5%.
Why It Matters
This isn’t just about two billionaires clashing. It’s about the future of the EV market in the U.S.
The federal tax credit has helped level the playing field for EVs, making them more accessible to buyers. Removing it could slow adoption, stifle innovation, and hit companies like Tesla hard. This week was a clear reminder of how deeply tied politics and clean transportation policy have become.
For now, all eyes are on Washington, and on Musk to see what happens next.
Source: Reuters