Tesla's Tumultuous Ties: Politics, Profits, and Price Plummets
Tesla's stock experienced a dramatic drop after an escalating feud between Donald Trump and Elon Musk, erasing $150 billion in value. The dispute stemmed from Trump's budget bill and comments about Musk's influence in his election. The fallout has potential implications for Tesla's ambitious driverless car plans and SpaceX's government contracts.
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- United States
Tesla faced a massive financial blow on Thursday as its stock plummeted over 14%, wiping out $150 billion in market value. The drop occurred amid escalating tensions between Elon Musk and Donald Trump over a budget bill, with both parties exchanging sharp critiques.
Trump hinted at potentially ending government subsidies and contracts for Musk's ventures, affecting not just Tesla but SpaceX, which has received billions from NASA. The conflict has raised investor concerns about regulatory challenges for Tesla's upcoming robotaxi services and its core electric vehicle business.
Despite a mild after-hours recovery, Tesla's volatile stock reflects growing unease about political risks influencing its operations. Analysts fear that Trump's unpredictable approach could delay the rollout of autonomous vehicles, a hopeful driver of Tesla's future growth.
(With inputs from agencies.)
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