Tesla shares have dropped 16% since CEO Elon Musk began criticizing President Donald Trump’s spending bill last week, marking a 33% decline since Inauguration Day. This decline follows Musk’s departure from the Trump administration, where he served as head of the Department of Government Efficiency. Musk, who has faced backlash for severe federal workforce cuts during his tenure, expressed disappointment over the spending bill, which he labeled a “disgusting abomination” and criticized for not including an electric vehicle tax credit that could boost Tesla sales.
The tension escalated when Trump threatened to end Musk’s government subsidies, which Musk countered by claiming he had never seen the bill before its passage and that it undermined his team’s efforts. Their public feud intensified with Musk posting critical remarks about the bill on social media. Analysts suggest that while the EV tax credit plays a role, broader regulatory concerns regarding Trump’s stance are more influential on Tesla’s stock performance. The situation appears unsettling for Tesla shareholders.
Musk, the world’s richest person, recently reminded the public of his substantial financial support for Trump’s campaign, while Trump jokingly remarked on Musk’s apparent nostalgia for the White House. Musk’s past close ties with Trump seem strained, evidenced by their escalating public disputes. Meanwhile, Trump’s own media company also faced stock declines, highlighting a downturn for both figures amidst their contentious split.
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