June 6 (Reuters) - Tesla is the worst-performing

large-cap stock this year, thanks to declining electric vehicle

demand, Chief Executive Elon Musk's political controversies over

his ties to far-right groups, and now, his public feud with

President Donald Trump.

Tesla shares slumped on Thursday, after Trump on social

media threatened to cut off government contracts with Elon

Musk's companies, following Musk's sharp criticism of the

president's signature tax and spending bill on his X social

media platform.

The market capitalization of Tesla Inc ( TSLA ) has fallen

29.3% to $917 billion so far this year, the biggest drop among

big companies in the world.

Tesla, which ranked eighth globally in market capitalization

at the beginning of the year, slipped to tenth as of June 5.

The company's shares rose in early trading on Friday, as

investors took some comfort from White House aides scheduling a

call with Musk to broker peace after a public feud with Trump.

Apple ( AAPL ), which began the year as the world's most valuable

company, has slipped to No. 3 this year, dragged down by weak

demand in China, Trump's tariff threats, and slower progress in

AI. Its market capitalization has declined over 20% this year,

falling to $2.99 trillion as of Thursday.

Meanwhile, Microsoft ( MSFT ) has claimed the No. 1 spot in market

capitalization, driven by surging demand for AI services,

including its partnership with OpenAI and the integration of

tools like Microsoft ( MSFT ) 365 Copilot.