In a dramatic turn of events, the once amicable relationship between Elon Musk and Donald Trump has deteriorated into a public feud, causing significant ripples in the financial markets. The clash between these two influential figures has not only captivated public attention but has also led to a notable decline in Tesla’s stock value.
The conflict ignited when Elon Musk openly criticized President Trump’s proposed “Big Beautiful Bill,” a comprehensive tax and spending plan. Musk labeled the bill as fiscally irresponsible, particularly highlighting concerns over cuts to electric vehicle (EV) subsidies, which are crucial to Tesla’s business model. In response, Trump expressed his disappointment in Musk and hinted at potential repercussions for Tesla, including the revocation of government subsidies.en.wikipedia.org+3theguardian.com+3people.com+3en.wikipedia.org+1nypost.com+1
Escalation on Social Media
The disagreement quickly escalated on social media platforms. Musk took to X (formerly Twitter) to voice his dissent, suggesting that Trump might be implicated in the unreleased “Epstein Files,” which pertain to the investigation of Jeffrey Epstein. He accused the government of withholding these documents due to Trump’s alleged involvement. Trump’s team dismissed these claims as politically motivated attacks, further intensifying the feud.theguardian.com+1news.com.au+1thedailybeast.com+1en.wikipedia.org+1
Impact on Tesla’s Stock
The public spat had immediate financial consequences. Tesla’s stock (TSLA) experienced a sharp decline, dropping over 14% and erasing approximately $150 billion from the company’s market capitalization. Investors reacted with concern over the potential loss of EV subsidies and the broader implications of Musk’s political entanglements. This marked Tesla’s steepest single-day stock drop in over four years.theguardian.com+1timesofindia.indiatimes.com+1news.com.au+1nypost.com+1nypost.com
Broader Political and Social Repercussions
The feud has also sparked discussions about the intersection of politics and business. Musk’s involvement in political discourse, particularly his criticisms of Trump’s policies, has drawn both support and criticism. Some view his actions as a stand for corporate responsibility, while others see it as an overreach into political matters. The situation underscores the delicate balance CEOs must maintain when engaging in political debates.
Looking Ahead
As the situation continues to unfold, stakeholders are closely monitoring the developments. The outcome of this high-profile feud could have lasting implications for Tesla’s business operations and its stock performance. Investors and analysts alike are keen to see whether the company can navigate this turbulent period and restore confidence in its leadership and strategic direction.theguardian.comtimesofindia.indiatimes.com