Overview

• Trump bought the red Model S in March for around $80,000 to show support for Musk and is now considering selling or giving away the vehicle.
• The public spat escalated after Musk criticized Trump’s proposed tax bill, leading Trump to call him “crazy” and threaten to cut federal contracts with SpaceX and Tesla.
• The conflict has erased roughly $138 billion from Tesla’s market value and slashed Musk’s net worth by about $34 billion.
• Tesla’s profits plunged 71 percent to $409 million in the April quarter, marking its lowest quarterly earnings since 2020.
• Observers say the feud has unsettled investor confidence and polarized Tesla’s customer base, putting further pressure on the company’s market performance.