Tesla’s stock experienced a significant downturn on Thursday, plummeting nearly nine points to $303.03 per share, as tensions escalated between President Donald Trump and the company’s CEO, Elon Musk.
This decline reflects investors’ concerns over the volatile exchange between the two high-profile figures, who have notably collaborated in the past.
The clash began when Musk publicly criticized Trump’s recent tax bill, known as the “big beautiful bill.”
In response, Trump downplayed Musk’s influence in his 2024 election campaign during a press conference in the Oval Office, where he was seated alongside German Chancellor Friedrich Merz. Trump asserted that Musk was not a vital factor in his electoral success, stating, “I would have won easily anyway.”
He further described Musk as “very disappointing,” a remark indicating a rift in their previously amicable relationship.
Musk quickly countered Trump’s comments via social media, taking credit for Trump’s electoral victory.
“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk wrote, expressing frustration over what he perceived as ingratitude.
The fallout between Trump and Musk escalated as Musk continued to criticize the tax bill, questioning its merits and suggesting it was not beneficial.
Trump, in turn, dismissed Musk’s contributions to his campaign, implying that even under different circumstances, he would have secured Pennsylvania in the election.
The ongoing public feud has raised concerns among Tesla investors, who are wary of how the discord might affect the company’s performance and public image.
Musk’s outspoken nature, combined with Trump’s controversial political style, has created a precarious environment for Tesla, which has enjoyed robust support from both political and business circles.
The investor reaction to this situation underscores the interconnectedness of politics and business in the current climate.
As influential figures like Trump and Musk wield significant power, their personal and professional disputes can have far-reaching implications for companies like Tesla, which relies heavily on public perception and investor confidence.
As the tension continues, analysts are closely monitoring Tesla’s stock performance and the broader implications of the Trump-Musk relationship.
The volatility in shares is a reminder of how swiftly fortunes can change in the tech and automotive sectors, particularly when intertwined with political narratives.
In a world where business leaders and politicians often operate in tandem, the developments between Trump and Musk serve as a critical case study in the impact of personal relationships on corporate success.
Investors will be watching closely to see how this conflict unfolds and whether it will have lasting effects on Tesla and the broader market.
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