Trump and Musk feud over electric vehicle tax credits, causing Tesla’s market value to plunge by $152.4 billion.

President Trump and Elon Musk engaged in a heated exchange of insults on Thursday, leading to a significant rift in their relationship.

Trump accused Musk of experiencing “Trump derangement syndrome,” suggesting that Musk’s criticism of his legislative agenda stemmed from the repeal of electric-vehicle tax credits.

Musk, who invested heavily to support Trump’s election bid, retaliated by stating that Trump was ungrateful and implied that he would not be president without Musk’s backing.

This public dispute resulted in a notable decline in Tesla’s market value, which dropped by approximately $152.4 billion—the largest single-day decline recorded for the company.

Big, beautiful bill

The conflict was sparked by Musk’s vocal opposition to Trump’s proposed “one big, beautiful bill.” The legislation seeks to extend and expand tax cuts, while also allocating funds for border enforcement and the military, all of which are partially offset by cuts to Medicaid, food aid, and clean-energy tax credits.

The fallout from this exchange highlights the changing dynamics in American political relationships, particularly in the context of influential figures such as Musk and their impact on policy discussions and market behaviour.