tsmc dethrones tesla: market cap surges amid musk-trump feud
Taipei, Friday, 6 June 2025.
A dramatic shift in the global tech landscape sees tsmc reclaim a top-ten market capitalization spot. This was fueled by a 14% plunge in tesla’s stock value. The catalyst was escalating tensions between elon musk and president trump. Tesla’s market capitalization was slashed by $100 billion in a single day. Meanwhile, the u.s. government is reconsidering chip legislation. This adds another layer of uncertainty to the semiconductor industry.
Musk-trump feud triggers market volatility
The clash between Elon Musk and Donald Trump sent ripples through the stock market [1]. Musk criticized Trump’s spending bill, which led to Trump suggesting the termination of government subsidies for Musk’s ventures [1]. This public dispute directly impacted Tesla’s valuation [2]. The electric vehicle maker’s stock plummeted, resulting in a $150 billion decrease in its market capitalization in a single day [2]. This illustrates how geopolitical and personal conflicts can significantly influence market dynamics, particularly for companies with high profiles [1].
tsmc’s ascendance amid semiconductor landscape shifts
As Tesla’s stock faltered, tsmc’s stock demonstrated resilience, allowing it to climb back into the top ten global companies by market capitalization [1]. Tsmc’s market capitalization reached $1.054 trillion, surpassing Tesla’s valuation [1]. This reflects tsmc’s pivotal role in the semiconductor industry and its perceived stability compared to the more volatile electric vehicle sector [GPT]. The u.s. government’s re-evaluation of the chip act introduces uncertainty but also highlights the strategic importance of semiconductor manufacturing [2].
expert analysis and market outlook
Despite positive momentum, analysts advise caution regarding tsmc’s future performance [3]. Key risks include potential impacts from trump’s tariff policies, upcoming u.s. non-farm employment data, and the strong performance of the south korean stock market, which could create comparative pressures on taiwanese stocks [3].永豐投顧 suggests that short-term trading strategies may be more suitable due to potential market fluctuations influenced by these factors [3]. Tsmc’s ai order boom is driving investment in related sectors [3].
broader implications for the tech sector
The events highlight the interconnectedness of the tech industry with political and economic factors [GPT]. Siemens has already limited the export of electronic design automation (eda) software and technology to china [2]. Counterpoint Research has lowered its 2025 global smartphone shipment growth forecast from 4.2% to 1.9%, citing uncertainties related to u.s. tariffs [2]. These developments suggest a cautious outlook for the tech sector, influenced by trade tensions and regulatory changes [2].