Elon Musk has been at war with Donald Trump for the past two days and the culmination of the fight between the two former good friends erupted early this morning. President Trump threatened to cancel contracts and subsidies received by Musk's company to reduce government spending. Musk responded by saying that the process of decommissioning the SpaceX Dragon capsule has already begun.
When donkeys fight goats, there must be a third party caught in the middle. Tesla shares fell more than 14% this morning due to Trump's threats. This has caused Tesla to no longer be a company with a market value of $1 trillion. At the time of writing, the company's market value is only around $917 billion.
Trump claimed that his relationship with Musk began to crack after he wanted to cancel the government's electric car (EV) purchase subsidy. This will cause huge losses for Tesla, which has been facing problems with sales starting to decline globally since the end of last year. This year alone, Tesla's market value has fallen 33% compared to 2024.