Tesla Shares Nosedive As Elon Musk Feuds With President Trump

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Actions always have consequences.

Tesla CEO Elon Musk is in a major feud with President Trump, but the argument is literally costing him millions.

In response to Musk and Trump’s feud the market was not bullish on Tesla but rather bearish.

As a result, Tesla’s stock price took a major dive.

CNBC provided key details:

Shares of Tesla fell 14% on Thursday as President Donald Trump threatened to pull government contracts for CEO Elon Musk’s companies, escalating a war of words over the spending bill.

The move dropped the EV maker $152 billion in value, the biggest hit to its market cap ever, putting it below the $1 trillion benchmark and settling Thursday at $916 billion.

“Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote on Truth Social.

Trump spoke from the Oval Office earlier Thursday and said Musk was upset that EV credits were not included in the bill.

“Elon and I had a great relationship. I don’t know if we will anymore,” Trump said in the Oval Office on Thursday. “I was surprised.”

“Whatever,” Musk fired back as the president spoke.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” he posted on X.

Take a look:

When things were all cordial between Trump and Musk, stocks were soaring.

Remeber the good times:

The moment Trump was elected Tesla stocks soared 14% which is the same number they have decreased in their falling out.

Coincidence?

Per KGW:

Shares of Tesla soared Wednesday following an election that will send Donald Trump back to the White House, an outcome that has been strongly backed by CEO Elon Musk in the closing months of the race.

Tesla stands to make significant gains under a Trump administration due to its size, with the expectation that subsidies for alternative energy and electric vehicles will be threatened.

While that would be a negative overall for the industry, it could give Tesla an advantage because of market share. Shares of rival electric vehicles sank sharply Wednesday.

Tesla shares jumped 14% at the opening bell.

Trump has proposed tariffs of 10% to 20% on foreign goods that would also impact electric vehicle makers outside the U.S., especially in China.



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