An internal source reveals: after publicly criticizing the “Big Beautiful Bill,” Musk received a call from Trump at 1:27 a.m. By the next morning, Tesla stock had plunged 14%. No one dares say it out loud — but those on the inside know: this was never about the economy

Tesla’s sales slump amid Musk’s politics, rising competition.

The public spat between US President Donald Trump and Tesla CEO Elon Musk, which started with criticism of government policy, significantly impacted the world’s top EV maker. Amid the ongoing feud, Tesla lost $150 billion in market capitalisation (market cap), and its shares dropped 14% in a day.

How much market cap did Tesla lose in 2025?

The market capitalisation of Tesla stood at $917 billion on June 6, 2025, marking a 29.3% decline this year, the largest drop among major companies across the globe, reported Reuters.

The EV maker has lost nearly $380 million in 2025 so far, the biggest loss among top companies amid Elon Musk’s political ambitions and low demand for Tesla EVs.

$150 billion wipeout & Musk’s opposition to ‘big beautiful bill’

Till Thursday, the electric vehicle (EV) maker has seen its market capitalisation shrink by approximately $150 billion since the feud began. Tesla share price crashed more than 14% after Musk called out Trump’s ‘big beautiful bill.’

The new bill proposed the elimination of federal EV tax credits, an incentive for Tesla sales. Removing these credits may pose a $1.2 billion challenge for Tesla, which currently faces challenges such as decreasing demand, declining profits, according to JPMorgan analyst Ryan Brinkman, as Mint reported on June 4, 2025.

$130 billion wipeout in March

In March, Tesla witnessed a major decline due to concerns about demand for the company’s electric vehicles. During this period, Tesla lost $130 billion in market value, Mint reported on March 11, 2025.

What is contributing to Tesla’s loss of market value?

Reportedly, Tesla chief’s prominent involvement in politics has significantly impacted the EV giant’s business. Investors previously voiced worries that Musk’s role in heading the Department of Government Efficiency to reduce government expenditures is taking his attention away from overseeing his businesses, such as Tesla, SpaceX, X, and xAI. However, Musk officially left DOGE on May 29.

The Tesla CEO overlooked Tesla’s customer base while catering to Trump’s administration, US marketing professor Scott Galloway said in a podcast.

“He’s alienated the wrong people,” he said. “Three-quarters of Republicans would never consider buying an EV. So he’s cozied up to the people who aren’t interested in EVs,” Galloway added.

Notably, Trump repeatedly championed for ‘drill baby drill’, advocating to raise domestic oil and gas production, which raised concerns over demand for EV vehicles.

Galloway also highlighted how Tesla’s sales fell nearly 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland and 33% in Portugal. Musk’s recent involvement in the political affairs of various European countries, a key EV market, through his social media platform X, has affected Tesla sales region, CNN reported.

Meanwhile, Chinese EV maker BYD surpassed Tesla sales in Europe for the first time in April, according to a report from Jato Dynamics.

Tesla’s profits dropped 71% by the end of April, Musk confirmed in an earnings call that he plans to reduce his involvement with DOGE from May onwards.