Trump vs. Musk: A Clash Over Tax Bill and Electric Vehicles
President Trump criticized Elon Musk for opposing a key tax and spending bill due to the proposed elimination of electric vehicle tax credits. The disagreement highlights differing views on economic policies. Tesla's stock dropped significantly, reflecting market volatility and investor concerns amid the political clash.
In a heated exchange, President Donald Trump criticized Elon Musk on Thursday, expressing disappointment over the Tesla CEO's public opposition to a central tax-cut and spending bill within Trump's policy agenda. The president indicated that Musk's outspoken stance stemmed from proposed end-of-life policies for consumer tax credits on electric vehicles.
Elon Musk, CEO of Tesla, voiced concerns regarding fiscal deficits that could arise from the bill. Meanwhile, Tesla shares took a nosedive, falling 9.7% to $299.73, while Trump Media and Technology Group Corp also dropped by 4.3% to $20.94. Market analysts such as Juan Perez of Monex USA suggest that the conflict embodies a broader dialogue on global economic power shifts and regulation dynamics.
Financial expert Mark Spiegel from Stanphyl Capital highlighted the turbulence Tesla faces amid this discord with Trump, stressing that Tesla's valuation may not match current trade expectations. Bill Strazzullo of Bell Curve Trading added that Musk's opposition to the bill likely centers on economic policies affecting electric vehicles rather than broader American interests. The friction points to larger financial and market implications, reflecting differing priorities between the White House and Tesla's leadership.
(With inputs from agencies.)
Google News