Tesla stock tumbles as Trump and Musk’s feud deepens over federal spending

Tesla shares plunged 14% on Thursday

Dusmanta Behera
Dusmanta Behera - Editor-in-Chief
2 Min Read
File Photo of Elon Musk

NewzVille International

A dramatic feud between U.S. President Donald Trump and billionaire entrepreneur Elon Musk is sending political and economic shockwaves across the globe.

Once considered allies, the relationship soured after Musk publicly criticized Trump’s new federal spending bill, calling it an “abomination.” In response, President Trump threatened to cancel lucrative government contracts with Musk’s companies—including SpaceX, which holds key deals with NASA and the U.S. military.

Adding to the fallout, Trump on Friday dismissed Musk as, quote, “a man who has lost his mind,” while hinting that federal subsidies for Tesla and other Musk-led ventures could soon come under review.

Markets responded swiftly. Tesla shares plunged 14% on Thursday but staged a partial rebound on Friday as both sides appeared to tone down hostilities.

Despite the rhetoric, President Trump appeared to downplay the dispute during a media interaction Friday, saying he was “too busy working on international issues” to focus on Musk.

The rift has raised concerns over the future of U.S. space leadership, particularly as SpaceX plays a central role in projects like the Artemis Moon mission and military satellite launches.

Analysts say the mutual dependence between Musk’s companies and the U.S. government may force both sides to seek common ground—at least for the sake of national interest.

Share This Article
Dusmanta Behera
By Dusmanta Behera Editor-in-Chief
Follow:
Dusmanta Behera's pioneering experience of 26 years includes key roles at News Today Pvt Ltd, ETV Networks, Lok Sabha TV. Rajya Sabha TV, and Sansad TV. As an accredited Video Journalist for more than 15 years under MI&B, Government of India covered State Visits of Prime Minister and Vice President. Valuable Contributions include Series on "National Security" and Chamber Telecast. Key interest remains in Documentaries on Armed Forces and Travelogues.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *