MYSTERY SURROUNDING TESLA’S STOCK DROP! Tesla’s stock plummets, wiping out $150 billion in value after a mysterious 1 a.m. call. A sudden and unexplained decline in stock value has left investors and fans bewildered. 

Tesla stock price crash wipes out $150 billion! Investors dump Elon Musk's company as clash with Donald Trump escalates; fear US President won't be a 'nice guy' - Times of India

In a year marked by political drama and plummeting sales, Tesla has suffered a staggering blow—losing nearly $380 billion in market value in 2025 alone. The electric vehicle giant’s fortunes have nosedived, with its stock price tumbling 14% in a single day after CEO Elon Musk publicly clashed with former President Donald Trump over the controversial “Big Beautiful Bill.”

A Midnight Call, a Market Meltdown

Insiders reveal that after Musk’s late-night criticism of Trump’s flagship policy, he received a call from the former president at 1:27 a.m. By morning, panic had set in. Tesla’s stock price cratered, wiping out $150 billion in market capitalization almost overnight. While few dare say it publicly, those close to the matter insist: this was about far more than economics.

The ‘Big Beautiful Bill’ Backlash

At the heart of the feud is the new bill, which proposes eliminating federal tax credits for electric vehicles—a move that could cost Tesla $1.2 billion in lost incentives, according to JPMorgan analyst Ryan Brinkman. With demand already waning and profits shrinking, the loss of these credits couldn’t have come at a worse time for Tesla.

Tesla shares rise on reports of upcoming Musk–White House talks - The Economic Times

Political Gambits, Plummeting Sales

Musk’s increasing foray into politics has rattled investors. His brief tenure as head of the Department of Government Efficiency (DOGE) drew criticism for distracting him from his core businesses—Tesla, SpaceX, X, and xAI. Marketing professor Scott Galloway notes, “He’s alienated the wrong people. Three-quarters of Republicans would never consider buying an EV. So he’s cozied up to the people who aren’t interested in EVs.”

Meanwhile, Trump’s “drill baby drill” mantra and push for more oil and gas have cast further doubt on the future of electric vehicles in the U.S.

Trump-Musk row slams Tesla shares, $150 billion in market value wiped out - Profit by Pakistan Today

A Global Downturn

The fallout isn’t limited to America. Tesla’s European sales have taken a nosedive: down 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal. Musk’s high-profile political interventions, amplified by his social media platform X, have alienated key customers across Europe. In a symbolic blow, Chinese rival BYD overtook Tesla in European sales for the first time in April, according to Jato Dynamics.

Profit Plunge and a Path Forward

By the end of April, Tesla’s profits had plummeted by 71%. Musk, acknowledging the crisis, announced in an earnings call that he would scale back his political involvement to refocus on Tesla’s core mission.

A Company at the Crossroads

As Tesla reels from its biggest annual loss among global giants, the message is clear: in the high-stakes world of electric vehicles, politics and business don’t always mix. With competition rising and public sentiment shifting, Tesla faces its toughest road ahead yet.

Trump-Musk row slams Tesla shares, $150 billion in market value wiped out | Business News - The Indian Express