Elon Musk's Criticism of Tax Legislation Sparks Tesla Stock Turbulence

Elon Musk, CEO of Tesla, recently intensified his criticism of President Donald Trump's major tax legislation, a move that is being closely watched by investors. Musk's remarks, which he shared on social media platform X, denounced the bill as a 'disgusting abomination' and urged Congress members to reject it.

This stance has resulted in a noticeable dip in Tesla's stock price, dropping about 3% on an otherwise uneventful trading day for the company. Traders speculate that Musk's outspoken rhetoric may strain his relationship with the Trump administration, which has previously bolstered his business ventures.

Amidst a slump in Tesla's sales in key markets like Europe and California, Musk has distanced himself from the White House. The decision, particularly alongside his alignment with Senate Republicans critical of the House bill, may impact Tesla's reliance on EV subsidies, which are at risk under the proposed legislation.

(With inputs from agencies.)