Tesla’s staggering $153 billion wipeout eclipses TCS’s entire market cap by 8% amid Musk-Trump feud

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The single-day wipeout for Tesla is staggering not just in isolation but also when stacked against India’s corporate giants.
Tesla’s staggering $153 billion wipeout eclipses TCS’s entire market cap by 8% amid Musk-Trump feud
In social media posts Musk has launched a fierce attack on the US President, who has also hit back. 

Tesla shares went into free fall on Thursday, plunging 14% and erasing a staggering $153 billion in market value, the biggest one-day loss on record for the electric vehicle maker.

The single-day wipeout for Tesla is staggering not just in isolation but also when stacked against India’s corporate giants. The erosion of Tesla’s market value exceeds the entire market capitalisation of Tata Consultancy Services (TCS), India’s most valuable IT firm, by nearly 8%. TCS has a market cap of ₹12.17 lakh crore, which (1 USD = ₹85.834) is $141.844 billion.

The loss amounts to nearly 88% of HDFC Bank’s market value, which stood at $173 billion on Thursday, and about 67% of Reliance Industries’ market cap, the country’s most valuable company.

The selloff followed an intensifying public feud between Tesla CEO Elon Musk and U.S. President Donald Trump, who once called the billionaire his “First Buddy.” The confrontation sent investors into a panic, with no other major Tesla-related news driving the fall.

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The drama began when Trump criticised Musk over his response to a controversial tax bill. Musk, who recently stepped down from his formal government role, retaliated on social media, lambasting the president’s “big, beautiful bill.” Trump hit back, threatening to cut off federal subsidies and contracts to Musk-led companies, including Tesla and SpaceX.

The stock closed at $284.70, down 14.26% from its previous close of $332.05. The stock dropped as much as 17% to an intraday low of $273.21 on the NASDAQ during US market hours.

The timing couldn't be worse for Tesla. Amid declining EV sales, Musk has been repositioning Tesla’s future around self-driving technology, which he claims could unlock $1 trillion in value. But regulatory uncertainty, especially under a hostile administration, could derail that vision.

Tesla stock had soared 169% after Musk endorsed Trump’s re-election bid last July but is now down 41% from its all-time high in December, hit by protests, slowing sales in key markets, and political turbulence.

The feud introduces significant regulatory and political risks for Tesla, especially as the U.S. Transportation Department plays a critical role in approving autonomous vehicle technologies, an area Tesla is aggressively pursuing. Tesla is currently under federal investigation for its Full Self-Driving software following a fatal crash, and any fallout with regulators could jeopardise the company’s ambitions to mass-produce robotaxis.

Musk’s recent departure from the Department of Government Efficiency (DOGE), where he played a central role in cost-cutting efforts, was initially seen as a chance for Tesla to refocus. But the spat with Trump swiftly eclipsed any relief shareholders might have felt.

Thursday’s rout shaved $27 billion off Musk’s net worth, dropping it to $388 billion. Short sellers, meanwhile, gained an estimated $4 billion, per S3 Partners.

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