The American company Tesla has registered one of the largest market losses in its history, after it lost about 380 billion dollars of its value since the beginning of 2025, in light of the escalation of tensions between its CEO Elon Musk And the American president Donald Trump.
According to market data, Tesla’s market value fell from $ 1.3 trillion in early January to 950.63 billion dollars by June 6, registered a decrease of 29.3%, which is the worst performance among major international companies this year.
Historical loss
The most prominent decline came after a public dispute between Musk and Trump, against the backdrop of Mask’s criticism of a draft tax law and spending by Trump, which includes the abolition of the tax incentives designated for electric vehicles in the new budget project.
Trump responded with statements threatening to cut off government contracts with Musk companies, which sparked the panic of investors and paid Tesla’s shares to decline by 14% in one day, which cost the company a market loss of $ 152 billion, in the largest daily decline in its history.
This decline was also reflected in the personal wealth of the personal mask, which reduced about 34 billion dollars during the same day, despite retaining the title of the richest man in the world with an estimated wealth of about 334.5 billion dollars.
Musk had described the budget project that Trump called “the beautiful big law” as “an abomination that raises disgust”, warning that it would increase the government deficit by about 2.5 trillion dollars during the next decade. Trump responded by describing Musk as “the man who lost his mind”, hinting on the possibility of selling or donating a “Tesla” car, which had become a symbol of his former support for the president of the SpaceX company.
Challenges pressing Tesla
In addition to political tension, Tesla faces fundamental challenges in the market, most notably the decline in demand for electric cars, the intensification of competition from emerging and traditional companies, as well as a sharp decline in European sales.
This led to a decrease in the company’s profits by 71% until the end of last April, deepening investor concerns about the company’s future.
Despite this negative performance, Tesla still maintains an advanced position among the largest international companies, as it ranks 11th in the world in terms of market value.
A future look
Analysts believe that the continuation of the conflict between Musk and Trump may be reflected in the performance of the broader market, especially in light of the great impact of softening market indicators and individuals’ investments. Estimates indicate the possibility of correction in the markets ranging from 5% and 10% if the crisis does not contain.
Observers confirm that this model clearly highlights the impact of political tensions on the performance of major companies, especially those dependent on government policies and legislative support, such as technology and clean energy companies.