Tesla‘s stock took a nosedive on Thursday, shedding over $150 billion in market value—a staggering 14% drop in a single day. The catalyst? A public feud between CEO Elon Musk and President Donald Trump that has investors on edge.
Tesla Just Lost $150 Billion
| Takeaway | Stat |
|---|---|
| Tesla’s one-day market value loss | $150 billion |
| Musk’s personal net worth decline | $34 billion |
| Potential annual profit hit from EV tax credit loss | $1.2 billion |
The Musk-Trump feud has sent shockwaves through the market, highlighting the risks of political entanglements for major corporations. Investors and stakeholders will be watching closely to see how this conflict unfolds and what it means for Tesla’s future.
The Feud Unfolds
The tension ignited over Trump’s “One Big Beautiful Bill,” a tax-and-spending package that phases out federal electric vehicle subsidies. Musk, who had previously been a Trump ally, criticized the bill, calling it a “disgusting abomination” due to its projected $2.4 trillion increase in the national deficit over the next decade. He also claimed that Trump wouldn’t have been elected without his support.
Trump responded on his social media platform, Truth Social, suggesting that terminating government contracts with Musk’s companies would be an effective way to save billions in the federal budget. This public spat has raised concerns among investors about potential regulatory retaliation and the future of Tesla’s government contracts.
Investor Concerns
The market reaction was swift and severe. Tesla’s stock plummeted, erasing significant market value. Analysts warn that losing federal EV incentives and potential unfavorable regulations could cost Tesla billions. The company’s reliance on government contracts, especially for its autonomous vehicle ambitions and SpaceX’s NASA partnerships, adds to the uncertainty.
Broader Implications
This feud doesn’t just impact Tesla’s stock price; it has broader implications for the company’s future. Musk’s leadership and political alliances are under scrutiny, and the potential loss of federal support could hinder Tesla’s growth, particularly in the autonomous vehicle sector. Additionally, the public nature of this dispute may affect consumer perception and brand loyalty.
