Turbulence in Tesla: Musk vs. Trump
Tesla shares fell as discord between Elon Musk and President Trump became public. Musk criticized new tax legislation and Trump's administration, sparking investor fears. His relationship with the White House affects Tesla's market and regulatory strategies. Despite setbacks, Tesla remains the world's most valuable automaker.
Discord between Tesla's CEO Elon Musk and President Donald Trump has alarmed Tesla shareholders, triggering a 7% drop in the company's shares. Musk's critique of Trump's new tax legislation has raised concerns about potential impacts on Tesla's financial health and business operations.
President Trump alleged that Musk's criticism stems from changes in tax benefits for electric vehicles, crucial to Tesla's sales strategy. Musk, in his outspoken critique, labeled the tax bill a "disgusting abomination" and advocated for its rejection through social media.
Investor anxiety is compounded as Musk's alignment with, and subsequent distancing from, the Trump administration may affect Tesla's standing with buyers and regulators alike. Recent market reactions reflect fears of long-term effects on Musk's business empire, despite Tesla retaining its status as the most valuable automaker.
(With inputs from agencies.)
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