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By Hannah Parry
Associate News Editor
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Tesla shares plummeted by more than 14 percent on Thursday, as the relationship between CEO Elon Musk and President Donald Trump fractured.
Stock prices in the electric vehicle company dropped 47 points by the end of trading, down from its midday peak of 335.53.
Why It Matters
A growing division has emerged between Musk and Trump since the former left the White House at the end of May, with the president's "big, beautiful bill" becoming a major point of contention between the two former allies.
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What To Know
During a White House meeting on Thursday, Trump said that he had been disappointed in Musk's criticism of the budget bill, suggesting that the billionaire opposed it because it removed electric vehicle tax credits.
"I'm very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people," Trump told reporters. "All of a sudden he had a problem, and he only developed the problem when he found out that we're going to have to to cut the EV mandate."
"Whatever," Musk shot back on X, formerly Twitter, in what began a flurry of furious posts aimed at the president.
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He later claimed that Trump would have lost the election without his support, adding "such ingratitude."
Trump responded with his own post on Truth Social, suggesting that the government should "terminate" Musk's federal subsidies and contracts.
The war of words has already taken a toll on Tesla, which saw a double-digit percentage drop. Forbes estimates the drop wiped $17.2 billion from Musk's previous $400 billion fortune.
Tesla stock had begun to rally last month, jumping 22 percent after Musk announced he was leaving the Department of Government Efficiency and would focus on his role as Tesla's CEO. The electric car company has suffered since Musk joined the Trump administration, with protests at dealerships and a rapid decline in sales and stock prices.
What People Are Saying
President Donald Trump told reporters in the Oval Office Thursday: "Look, Elon and I had a great relationship. I don't know if we will anymore."
Elon Musk, on X: Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate. Such ingratitude."
President Donald Trump posted on social media: "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!"
What Happens Next
Trump and Musk continued to spar online through Thursday afternoon. Meanwhile, the president has given senators until July 4 to pass the bill.
Update 6/5/25, 4:09 p.m. ET: This article was updated with additional information.
Update 6/5/25, 4:24 p.m. ET: This article was updated with additional information.
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