The Tesla stock story in June 2025 is a dramatic mix of political conflict, market volatility, and shifting investor sentiment. As of June 6, Tesla (TSLA) trades at $295.66, down nearly 11% in a single day, reflecting the company’s most turbulent period in recent memory. The latest headlines are dominated by a public feud between CEO Elon Musk and President Donald Trump, which has sent shockwaves through Wall Street and the broader electric vehicle (EV) market.
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Tesla Stock Price Plummets After Musk-Trump Clash
Tesla stock’s recent performance has been defined by a sharp decline. On Thursday, TSLA fell almost 11%, closing at $295.66 after opening at $322.49. This drop follows a series of losses that have erased more than 22% of Tesla’s value since the start of 2025. The company’s market cap now stands at just under $1 trillion, a stark contrast to its $1.2 trillion peak earlier in the year.
The immediate catalyst for this selloff is the escalating war of words between Elon Musk and President Trump. Musk, once a close ally and even a member of Trump’s administration, has become a vocal critic of the president’s new tax and spending bill. Musk’s public condemnation of the legislation—calling it a “disgusting abomination”—has not only angered Trump but also rattled investors, especially those who see political stability as key to Tesla’s continued growth.
The Political Drama: Trump, Musk, and the EV Mandate
The relationship between Trump and Musk has soured rapidly. Trump, in a press conference, accused Musk of turning against the administration only after learning that electric vehicle credits would be slashed from the new budget bill. “I’m very disappointed with Elon,” Trump said, emphasizing that Musk had been fully aware of the bill’s details and only objected when it threatened Tesla’s bottom line.
Musk, for his part, has fired back on social media, suggesting that Trump would not have won the 2024 election without his support. He has aligned himself with Senate Republicans opposing the bill, arguing that it does not go far enough in cutting government spending. This high-profile dispute has created uncertainty about Tesla’s future access to government incentives, which have historically played a significant role in the company’s profitability.
Key Points from the Musk-Trump Feud
- Musk publicly criticized Trump’s tax and spending bill, calling for the Senate to reject it.
- Trump accused Musk of self-interest, claiming his opposition is solely due to the removal of EV credits.
- The feud has alienated some Republican Tesla buyers and created uncertainty about future government support for EVs.
- Investors are concerned that the deteriorating relationship could impact Tesla’s regulatory credit sales and overall profitability.
Tesla Stock Faces Broader Market Headwinds
While the Musk-Trump spat dominates headlines, Tesla stock is also under pressure from broader market and industry trends. The company’s Q1 2025 vehicle deliveries dropped 13% year-over-year, with only 336,681 vehicles delivered. This decline has sparked concerns about waning consumer demand and intensifying competition in the EV market.
Tesla’s much-anticipated Robotaxi service, once touted as the next big growth driver, is now facing stiff competition from established players like Waymo (Alphabet) and Cruise (General Motors), as well as emerging startups. Investor enthusiasm for the Robotaxi initiative has cooled, with insiders selling a combined $200 million in Tesla stock in recent weeks—a move widely interpreted as a lack of confidence in near-term growth.
Recent Insider Sales
| Insider | Shares Sold | Value (Approx.) |
|---|---|---|
| Ira Ehrenpreis | 200,477 | $162 million |
| Kimbal Musk | 91,588 | $31 million |
The timing of these insider sales, amid mounting challenges, has further shaken investor confidence.
International and Domestic Sales Under Pressure
Tesla’s struggles are not limited to the U.S. market. May sales data from Germany showed a 36% year-over-year decline, underscoring the company’s difficulties in maintaining its growth trajectory in Europe. Legal battles over tariffs and shifting consumer preferences toward alternative EV brands have added to the uncertainty.
Despite these setbacks, Tesla remains the world’s most valuable automaker, with a market cap far exceeding that of Toyota. However, the stock’s current price-to-earnings (P/E) ratio of nearly 168 suggests that investors are still pricing in significant future growth—a bet that looks increasingly risky given the current headwinds.
Analyst Outlook: A Divided Street
Wall Street remains divided on Tesla stock. Some high-profile investors, like Cathie Wood, continue to predict massive upside, with long-term price targets as high as $2,600 based on the potential of autonomous vehicles and energy products. Others, including analysts at Wedbush, have adopted a more cautious stance, setting price targets around $500 and warning that the stock is trading at a steep premium to its historical valuation.
J.P. Morgan analysts have warned that the Senate’s proposed legislation could cost Tesla $1.2 billion in annual profit and an additional $2 billion in lost regulatory credit sales. Portfolio managers are increasingly wary of the risks posed by both the political environment and Tesla’s operational challenges.
What’s Next for Tesla Stock?
Tesla’s near-term outlook is clouded by political uncertainty, declining sales, and fierce competition. The Musk-Trump feud has become a significant overhang, raising questions about the company’s future relationship with regulators and its ability to secure government incentives.
At the same time, Tesla’s innovation pipeline—especially in autonomous vehicles and energy storage—remains a source of long-term optimism for some investors. The company’s next earnings announcement, scheduled for July 21, will be closely watched for signs of stabilization or further deterioration.
Factors to Watch
- Progress on the Robotaxi rollout and competitive response
- Legislative developments affecting EV credits and regulatory sales
- Insider trading activity and management commentary
- International sales trends, especially in Europe and China
- Market reaction to the next earnings report
Conclusion: Tesla Stock at a Crossroads
Tesla stock is at a critical juncture. The combination of political drama, weakening sales, and insider selling has created a volatile environment for investors. While the company’s long-term prospects in autonomous driving and clean energy remain compelling, the immediate risks are substantial. The outcome of the Musk-Trump feud and the fate of the EV tax credits could determine whether Tesla stock rebounds or continues its downward trajectory.
For investors, the message is clear: stay informed, monitor the headlines, and be prepared for continued volatility in Tesla stock as the story unfolds.
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