Tesla faced a dramatic downturn in 2025, with its market capitalization plummeting by $380 billion, marking the most significant loss among major global companies this year. The electric vehicle (EV) giant’s valuation stood at $917 billion as of June 6, representing a staggering 29.3% decline since January. Political Tensions and Public Spat Fuel Market Rout The sharpest blow came after a high-profile public fallout between Tesla CEO Elon Musk and U.S. President Donald Trump. The conflict, which began with Musk’s criticism of government policy and escalated into a heated exchange on social media, culminated in Trump threatening to revoke government contracts and subsidies for Musk’s companies. This triggered a 14% plunge in Tesla’s share price in a single day, erasing roughly $150–$152 billion in market value—the most significant one-day loss in the company’s history. The rift was further intensified by the passage of Trump’s “Big Beautiful Bill,” which eliminated federal