Tesla share price sinks as Musk–Trump feud escalates with Epstein tweet

Tesla’s share price fell sharply this week as a public dispute between CEO Elon Musk and former President Donald Trump spilled into social media, culminating in a sensational tweet by Musk referencing the Epstein files. The resulting investor concern saw Tesla drop more than 14% on Thursday, wiping out around US$153 billion in market value.

The turmoil began after Musk strongly criticised Trump’s proposed tax and spending legislation, calling it a “disgusting abomination.” In response, Trump threatened to cut off federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX. The standoff marks a significant shift in their previously amicable relationship.

Further escalating the tension, Musk posted a tweet suggesting Trump is named in sealed Jeffrey Epstein files — and implied that this was the reason they haven’t been made public:

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!

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— Elon Musk (@elonmusk) June 5, 2025

The unverified allegation immediately attracted global headlines and increased pressure on Tesla’s stock, which has been sensitive to Musk’s political commentary in the past. The fallout has also raised concerns about Tesla’s exposure to regulatory risk and future access to government support.

Analysts now warn that the deteriorating political relationship could hinder Tesla’s plans for its next-generation products, including its autonomous “robotaxi” rollout and infrastructure partnerships.

The feud between two of the most influential figures in U.S. politics and business comes at a critical time for the EV industry, with regulatory frameworks and consumer incentives in flux heading into the 2026 election cycle.