Tesla Stock Plummets After Musk-Trump Feud Causes $150 Billion Loss
In a shocking turn of events, Tesla Inc. shares took a nosedive by more than 14 per cent on Thursday following a public feud between CEO Elon Musk and President Donald Trump. This unexpected clash between two influential figures has sent ripples through the stock market, resulting in a staggering $150 billion reduction in the automaker’s market valuation.
The conflict began when Musk, a former head of the Department of Government Efficiency (DOGE), openly criticized a tax bill supported by Republicans, referring to it as a “disgusting abomination.” He also insinuated that Trump’s victory in the previous presidential election was partly due to his endorsement. This bold stance led to Musk’s abrupt resignation from the department, further escalating tensions between him and the president.
In response to Musk’s remarks, Trump threatened to revoke federal subsidies and contracts linked to Musk’s various enterprises, including Tesla and SpaceX. This ultimatum sent shockwaves through the financial world, causing Tesla’s stock to plummet to $284.7 by the end of the trading day, pushing the company’s valuation below $900 billion. The broader Nasdaq Index also experienced a decline of 0.8 per cent as a result of this high-profile dispute.
This clash between Musk and Trump has sparked concerns among investors regarding Tesla’s future in the U.S., particularly with its upcoming launch of autonomous robotaxi services. The company had plans to introduce this innovative service in Austin, Texas, later this year, with further expansions slated for 2026. Additionally, reports suggest that Tesla’s vehicle sales in Europe are on a downward trend, adding to the uncertainty surrounding the company’s performance.
Moreover, Tesla is facing renewed scrutiny over its autopilot system following a tragic 2023 crash reportedly linked to the software. This incident has reignited concerns about the safety and reliability of Tesla’s self-driving technology, further contributing to the company’s current challenges.
As a result of these developments, Musk’s net worth has taken a hit, decreasing by nearly $27 billion. Despite this setback, he still holds the title of the world’s richest person, underscoring the volatility and unpredictability of the financial markets.
