Escalating Dispute between Trump and Musk Contributes to Tesla's Plummeting Shares, $150 Billion in Market Value Vanishes
Sparky's Take:
Tesla Sizzles as Trump and Musk Lock Horns
Elon Musk's beef with the big guy in the White House, Donald Trump, has sent Tesla shares spiraling downward, leaving a charred trail of $150 billion in market value. On Thursday, the electric vehicle company's stock nosedived an alarming 14% in a single day, and it ain't looking good for Mister Musk.
Investors are on edge, wondering what this high-stakes drama means for Musk's empire. It's a Wild West showdown, with traders rushing to offload their Tesla stocks like cattle amidst the chaos.
So, what started this showdown? Well, it all began with Trump taking a pop at Musk over his criticism of the president's tax bill. Musk, being the feisty fella he is, hit back with a torrent of tweets that took the heat up a notch. Trump responded with a jab, claiming that Musk was miffed because the tax bill nixed tax breaks for electric vehicle buyers.
The potential for trouble brewing is real for Tesla. With the U.S. Department of Transportation overseeing vehicle design standards, they've got a big say in whether Tesla can mass-produce robotic, pedal-less taxi cabs. The agency is also investigating Tesla's self-driving software following a devastating crash.
Dennis Dick, a Tesla shareholder and chief strategist at Stock Trader Network, put it like this: "Elon's politics continue to harm the stock. First, he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration."
Musk has been pushing hard on his vision for a future centered around self-driving robotaxis, and critics argue that his focus on politics could hinder progress. On an earnings call last year, he said investors should sell their Tesla stock if they didn't believe the company could crack the code on autonnomous vehicles. Analysts at Wedbush say the potential AI and autonomous markets could be worth a whopping $1 trillion for Tesla.
The feud with Trump, however, has created a negative ripple effect that could jeopardize regulations and invite more government investigations. Ross Gerber, CEO of Tesla investor Gerber Kawasaki Wealth and Investment Management, agrees: "Every benefit that was perceived he would have got now turns into a negative."
Musk, currently the richest man in the world and a key player in the Department of Government Efficiency's cost-cutting plan, has his sights set on Trump's "big beautiful bill." He's been blasting it left and right during his time away from the White House and focusing on his businesses.
After Thursday's tumultuous trading, Musk's net worth took a significant hit, plummeting by roughly $27 billion. They say "money can't buy happiness," and you can bet Musk is feeling the pinch right now.
Trump, keeping his playful tone on Truth Social, shared his two cents on the matter: "The easiest way to save money in our Budget, billions and billions of dollars, is to terminate Elon's governmental subsidies and contracts."
Stay tuned, folks, because this juicy drama is far from over. We'll keep you updated on the latest twists as they unfold.
- The run-in between Elon Musk and Donald Trump in the realm of politics has caused a stir in the business world, impacting the market value of Tesla by a staggering $150 billion.
- In the sport of stock trading, Tesla shares plummeted by 14% in a single day due to this high-stakes political drama.
- Investors are keenly interested in understanding the repercussions of this showdown between Musk and Trump, with some choosing to offload their Tesla stocks in fear.
- Apart from Tesla, Musk's personal ventures in the technology sector, such as self-driving robotaxis, could potentially face hurdles due to his focus on politics.
- The value of the artificial intelligence and autonomous markets, estimated to be worth up to $1 trillion for Tesla, could be at risk due to unfavorable regulations or increased government investigations resulting from Musk's political feud.
- The general news, both business and political, is abuzz with the feud between Musk and Trump, with the potential consequences for Tesla and the tech industry as a whole remaining to be seen.
