The recent public feud between Elon Musk and President Donald Trump has sent shockwaves through financial markets, with Tesla's stock taking a significant hit. As reported by Fox News on June 6, 2025, Tesla's stock plummeted by 14% in a single trading session, directly impacting Elon Musk's net worth due to his substantial ownership in the company. The decline was recorded during intraday trading on June 5, 2025, with Tesla (TSLA) opening at $243.15 and dropping to a low of $209.10 by 2:00 PM EST, reflecting intense selling pressure. This event, fueled by escalating social media exchanges between the two high-profile figures, has not only affected Tesla's valuation but also rippled into related markets, including cryptocurrencies tied to Musk's influence. Tesla's market cap shrank by over $100 billion in a matter of hours, as per data from major financial trackers, sparking concerns among investors about volatility in tech stocks. For crypto traders, this stock market event is critical as Musk's ventures and statements have historically influenced digital asset sentiment, particularly for tokens like Dogecoin (DOGE), which Musk has publicly endorsed multiple times. The sharp drop in Tesla's stock also raises questions about risk appetite in broader markets, as investors may shift capital away from high-risk assets like cryptocurrencies during periods of uncertainty in tech equities. This interplay between stock market movements and crypto volatility offers unique trading opportunities for those monitoring cross-market correlations.

From a crypto trading perspective, Tesla's 14% stock decline on June 5, 2025, could signal potential downside risks for tokens closely associated with Elon Musk's brand, such as Dogecoin (DOGE). On the same day, DOGE saw a 7.3% drop, falling from $0.142 to $0.132 by 3:00 PM EST, with trading volume spiking by 24% to $1.2 billion across major exchanges like Binance and Coinbase, according to data from CoinGecko. This suggests heightened selling pressure in response to the Tesla news. Additionally, Bitcoin (BTC), often seen as a risk-on asset correlated with tech stocks, dipped by 2.1%, trading at $67,500 as of 4:00 PM EST on June 5, 2025, down from an intraday high of $69,000. The correlation between Tesla's stock performance and crypto markets is evident, as institutional investors often view tech stock volatility as a signal to reallocate funds. For traders, this presents opportunities to short DOGE or BTC if bearish momentum continues, or to look for reversal patterns if sentiment around Musk stabilizes. Monitoring social media sentiment and Musk's next public statements will be crucial, as positive news could trigger a quick rebound in DOGE, which historically reacts to his tweets within hours.

Delving into technical indicators, Tesla's 14% drop on June 5, 2025, pushed its Relative Strength Index (RSI) to 28 on the daily chart, signaling oversold conditions by 5:00 PM EST, as per TradingView data. Meanwhile, in the crypto market, DOGE's RSI on the 4-hour chart dropped to 31 at 6:00 PM EST, also indicating potential for a bounce if buying volume returns. Bitcoin's trading volume on June 5 saw a 15% increase to $35 billion across spot markets, reflecting heightened activity amid the Tesla news. The BTC-USDT pair on Binance recorded $12 billion in volume alone by 7:00 PM EST, suggesting institutional participation. The correlation coefficient between Tesla stock and Bitcoin has hovered around 0.6 over the past month, per historical data from market analytics platforms, underscoring a moderate positive relationship. This cross-market dynamic highlights how stock market events can drive crypto volatility. For institutional money flow, the Tesla sell-off may push capital into safe-haven assets, potentially pressuring crypto prices further, though some funds could rotate into Bitcoin as a hedge against equity market uncertainty. Crypto-related stocks like Coinbase Global (COIN) also saw a 3.2% dip to $220.50 by the close of trading on June 5, 2025, reflecting broader risk-off sentiment impacting the sector.

In terms of broader market impact, the Tesla stock plunge could influence crypto ETFs and related financial products. With institutional investors closely watching Musk's moves, any sustained weakness in Tesla shares might reduce confidence in crypto assets tied to tech innovation narratives. Traders should keep an eye on key support levels for DOGE at $0.125 and BTC at $66,000 as of June 6, 2025, while monitoring Tesla's stock for signs of recovery or further declines. The interplay between stock and crypto markets remains a critical factor for short-term trading strategies, especially as risk sentiment shifts.

FAQ:
What caused Tesla's stock to drop on June 5, 2025?
Tesla's stock dropped by 14% on June 5, 2025, due to a public feud between Elon Musk and President Donald Trump, as reported by Fox News on June 6, 2025. The stock fell from an opening price of $243.15 to a low of $209.10 by 2:00 PM EST.

How did Tesla's stock drop impact Dogecoin (DOGE)?
Dogecoin (DOGE) experienced a 7.3% price drop on June 5, 2025, falling from $0.142 to $0.132 by 3:00 PM EST, with trading volume increasing by 24% to $1.2 billion, reflecting market reaction to the Tesla news.

Is there a correlation between Tesla stock and Bitcoin?
Yes, there is a moderate positive correlation between Tesla stock and Bitcoin, with a coefficient of around 0.6 over the past month, based on market analytics data. On June 5, 2025, Bitcoin dropped 2.1% to $67,500 by 4:00 PM EST amid Tesla's stock decline.