Tesla stock plunges as Musk-Trump tension blows up

Tesla's stock price plummeted 16% on Thursday, wiping out over $180 billion in market capitalization, after Elon Musk's relationship with President Trump deteriorated. Trump suggested canceling Musk's government contracts, which could deliver a significant blow to Musk's wealth. Musk and Trump were once close allies, with Musk pouring hundreds of millions of dollars into Republican campaigns and leading the Department of Government Efficiency. However, their relationship has imploded, with Musk criticizing Trump's "big, beautiful bill" for increasing the national debt. Trump responded by threatening to terminate government contracts with Musk's companies, including SpaceX, which has a $4.46 billion contract with NASA. The threat has significant implications for SpaceX, which relies heavily on government contracts. Tesla investors are worried that the fallout could hurt the company's prospects, particularly with regards to favorable policies for electric vehicles and self-driving cars. Despite the setback, Musk's net worth remains at $368 billion, still the highest in the world. The deterioration of Musk's relationship with Trump has reversed the perceived benefits of their association, with investors now worried about the negative impact on Musk's empire.