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Trump-Musk Breakup Hits Tesla

  • On June 5, 2025, the previously close relationship involving Donald Trump and Elon Musk ended publicly amid intense social media confrontations.
  • The fallout occurred after Musk publicly condemned Trump's major federal budget proposal, particularly denouncing its increased expenditures and the rollback of electric vehicle requirements.
  • Trump responded by threatening to terminate all government contracts with Tesla and accused Musk of going crazy after the electric vehicle mandate was canceled.
  • Tesla's stock fell by more than 14% on Thursday, resulting in a reduction of approximately $150 billion in the company's market capitalization, following Musk's widely circulated post accusing Trump of involvement in the Epstein files.
  • This public feud suggests a deep political schism that could affect Musk's companies and Republican support, while Musk also urged impeachment proceedings against Trump.
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NBC News broke the news in United States on Thursday, June 5, 2025.
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