Tesla stock plunges as Trump attacks Elon Musk
- Elon Musk publicly criticized Trump's new tax-and-spending bill, raising concerns about the impact on electric vehicle subsidies.
- Trump retaliated by suggesting the government could revoke federal contracts held by Musk's companies, leading to Tesla's stock crashing.
- The feud has highlighted the volatility of Tesla's stock and raised alarms among investors regarding potential regulatory changes.
In recent days, a public feud erupted between President Donald Trump and Tesla CEO Elon Musk, impacting Tesla's stock significantly. The feud originated when Musk criticized the Republican tax-and-spending bill, calling it a 'disgusting abomination.' This bill proposed cuts to electric vehicle subsidies, which are crucial for Tesla's growth and directly affect the company's market positioning. As the conflict escalated, Trump suggested cutting federal contracts with Musk's companies, including Tesla and SpaceX, igniting further tensions. The fallout resulted in a substantial decline in Tesla's stock price, which fell nearly 15% in one trading day, wiping out around $151 billion in market value. Investors were concerned that the feud could lead to a more stringent regulatory environment for Tesla under the Trump administration. Both public figures exchanged insults on social media, revealing the deterioration of what had previously been a supportive relationship. As critics commented on the spectacle, Musk even accused Trump of being involved in the Epstein files, which added a sensational layer to the dispute. In addition to market implications, the feud garnered significant media attention, prompting reactions from various celebrities and politicians who weighed in on the ongoing drama via social media. Figures like Kanye West and Alex Jones chimed in on platforms like X, commenting on the unexpected nature of the conflict between two high-profile titans. Their public exchanges were described as a 'knife fight' compared to their earlier camaraderie, with analysts noting that the feud starkly affected investor confidence. The situation has left many investors in a precarious position, as uncertainty hangs over Tesla's regulatory future and potential repercussions from the Trump administration. The historical context of Musk's past roles in the government further complicates the narrative, highlighting the volatility inherent in the electric vehicle market and political relationships in the United States. In summary, the feud between Trump and Musk represents not just personal animosity but a profound disruption to Tesla's stock performance and overall market stability.