Tesla stock experienced a sharp wave of selling pressure from U.S. retail investors on Thursday, marking one of the most significant sell-offs in recent months. The move came as a high-profile public clash between former President Donald Trump and Tesla CEO Elon Musk dominated headlines, prompting a noticeable shift in investor sentiment.

Retail market-making clients at UBS led the exodus, pulling an estimated $81 million from Tesla stock in a single day. This dramatic outflow coincided with a spike in trading activity that placed Thursday’s session among the busiest in Tesla’s recent history. In terms of dollar volume executed, it was the most active day for Tesla since September 2023.

Notably, Tesla wasn’t just experiencing outsized attention—it was the most-sold stock across UBS’s platform on Thursday, with $36 million in retail outflows alone. The surge in selling reached a crescendo between 2:30 PM and 3:30 PM ET, suggesting a coordinated or emotionally driven reaction to the escalating tensions between the two public figures.

In terms of volume, Tesla’s activity was the third-highest of the year among all stocks traded by UBS’s retail market-making clients, trailing only Nvidia, which spiked after the launch of its Deep Seek product in January.

The public spat between Trump and Musk appears to have stirred unease among retail traders, many of whom view Musk as a central figure in Tesla’s narrative and future value proposition. When that personal brand becomes a source of controversy, it can quickly translate into volatility for the stock itself.

This event underscores just how sensitive Tesla’s stock remains to headlines—not just those about the company’s fundamentals, but also the personal dynamics of its leadership. In an era where personality-driven investing is increasingly common, such episodes serve as a reminder of how intertwined public perception and market performance have become.

As the dust settles, all eyes will be on whether this sell-off proves to be a short-term reaction or the start of a deeper shift in how retail investors view Tesla’s trajectory in a rapidly evolving market landscape.