Tesla Loses $150 Billion Market Cap After Musk-Trump Feud

Tesla's market capitalization experienced a significant drop of approximately $150 billion following a public dispute between its CEO, Elon Musk, and former U.S. President Donald Trump. The conflict arose from Trump's proposed tax and spending legislation, which Musk publicly criticized on social media, describing it as a "disgusting abomination" due to its excessive spending. Musk's criticism was particularly focused on the bill's proposed cuts to the electric vehicle tax credit, a move that analysts suggested took Musk by surprise. This public disagreement led to a sharp decline in Tesla's stock value, wiping out more than $100 billion in a single day, partially reversing the gains made in the previous eight weeks.

The escalating tension between Musk and Trump has raised concerns about the potential impact on Tesla's regulatory environment. Trump's influence over government policies could complicate Tesla's interactions with regulators, adding to the market's unease and contributing to the decline in Tesla's stock price. Musk's criticism extended beyond social media, as he urged his followers to pressure Congress to reject the legislation, further intensifying the feud. This public disagreement has highlighted the risks associated with high-profile CEOs engaging in political disputes, as such actions can have significant implications for their companies' market performance.

The feud between Musk and Trump underscores the delicate balance that corporate leaders must maintain between their personal beliefs and their responsibilities to shareholders. Musk's outspoken criticism of Trump's policies has not only affected Tesla's market value but also raised questions about the potential consequences for other companies with ties to the Trump administration. As the public disagreement continues, the market remains watchful for any signs of resolution or further escalation. The outcome of this feud could have lasting effects on Tesla's regulatory environment and its market performance, making it a critical issue for investors to monitor closely.