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Tesla Stock Fallout: $100 Billion Market Cap Loss

Solomon M. by Solomon M.
June 6, 2025
in Latest News
Key Points:
  • Tesla shares dropped due to Musk-Trump dispute.
  • Stock plunge reached a $100 billion loss.
  • Crypto markets saw increased volatility.
tesla-market-decline-impact-of-musk-trump-feud-on-markets
Tesla Market Decline: Impact of Musk-Trump Feud on Markets

Elon Musk’s row with Donald Trump over federal contracts has slashed Tesla’s market capitalization, affecting related crypto assets.

Tesla’s Market Value Decline

Tesla’s market drop follows Elon Musk’s conflict with Donald Trump, causing a 9.2%-17% share plunge. The incident triggered short-term volatility in leading cryptocurrencies like Bitcoin and Ethereum. Tesla is now below a $1 trillion valuation, significantly altering market sentiment.

Impact on Technology and Crypto Sectors

The public quarrel centers around federal contracts and electric vehicle credits, affecting Tesla’s stock. Market reactions include portfolio adjustments due to increased uncertainty, mirrored in tech and cryptocurrency sectors. Donald Trump, President of the United States, said,

“Elon and I had a great relationship. I don’t know if we will anymore. I was surprised.”

Market observers cite potential further implications for global tech-dependent markets under current conditions, suggesting continued volatility in stock and cryptocurrency landscapes. A notable outcome includes shifts in investor strategies and increased surveillance of market trends, with historical precedents showing temporary crypto market impacts following tech corrections.

Disclaimer:

The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.

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