Tesla's $849.74 Billion Trading Volume Leads Market Despite 14.26% Stock Plunge Amid Musk-Trump Feud

On June 5, 2025, Tesla's trading volume reached $849.74 billion, marking a 157.29% increase from the previous day and securing the top spot in the day's stock market activity. However, Tesla's stock price fell by 14.26%, marking the second consecutive day of decline and a total drop of 17.30% over the past two days.

Tesla's stock price plummeted as the public feud between CEO Elon Musk and President Donald Trump escalated. Musk's criticism of Trump's tax bill and Trump's subsequent threat to cancel federal contracts tied to Musk's companies, including Tesla, SpaceX, and Starlink, triggered a significant selloff.

Trump's threat to terminate government subsidies and contracts with Musk's companies followed Musk's public attack on the administration's tax bill, which Musk described as a "disgusting abomination." Musk responded defiantly, stating that SpaceX would immediately begin decommissioning its Dragon spacecraft, a key NASA crew transport vehicle.

The feud between Musk and Trump marks a dramatic reversal in their previously close relationship. Musk, who had been credited with helping Trump regain the presidency in 2024, had been a key ally of the administration. However, tensions escalated after Musk denounced the president's tax bill, citing its impact on deficits and the phase-out of key clean energy incentives.

Trump, speaking alongside German Chancellor Friedrich Merz, expressed disappointment in Musk and claimed that Musk only turned against the bill when it became clear it would cut EV tax credits and eliminate Tesla's regulatory advantages. Musk, in response, accused Trump of lying and stated that without his support, Trump would have lost the election.

The proposed tax legislation could significantly impact Tesla's profits, potentially slashing as much as $1.2 billion from Tesla's earnings by ending $7,500 EV subsidies earlier than expected. Additionally, parallel Senate moves to penalize California's EV mandate could result in an additional $2 billion hit to Tesla's profits.

Tesla's recent rally, driven by hopes for the June launch of a driverless "robotaxi" service in Austin, was erased by Thursday's slump. Broader concerns are mounting that the administration may now obstruct the regulatory support needed to scale autonomous vehicle programs.

Musk's sharp rightward shift has already proven divisive among Tesla customers, with his tenure at the Department of Government Efficiency drawing protests, particularly in blue states. Sales have slumped in key markets, including Europe, California, and China.

The fallout from the feud between Musk and Trump has turned personal and toxic, with both parties trading insults and accusations. Musk suggested that the time had come to launch a new centrist political party, while Trump expressed disappointment in Musk's ingratitude.