Tesla's Tumult Amidst Trump Tussle: Stock Plunge Sparks Investor Jitters
Shares of Tesla tumbled more than 14% amid investor concerns over Elon Musk's clash with President Trump, risking the company's future, including its highly anticipated robotaxi service. Trump's potential withdrawal of government contracts could severely impact Musk's ventures like SpaceX, making investors wary of heightened regulatory challenges.
Tesla's stock experienced a significant drop of over 14% on Thursday, as investors expressed apprehension over CEO Elon Musk's ongoing conflict with President Donald Trump. The disagreement, which stemmed from contentious remarks regarding the U.S. budget bill, has raised concerns about potential repercussions for Musk's enterprises.
The apprehension is fueled by Trump's implications that federal support for Musk's companies, including Tesla and SpaceX, might be jeopardized. Analysts suggest that Trump's stance could hinder Tesla's pivotal projects, such as the rollout of its autonomous robotaxi service, which is already set to begin testing in Austin, Texas.
Furthermore, potential regulatory obstacles have made investors wary of future developments. While Tesla has faced fluctuations due to its engagement with Trump, other Musk ventures—like SpaceX—continue to secure substantial private valuations and international deals, as evidenced by recent activities in the Middle East and beyond.
(With inputs from agencies.)
Google News