Tesla Stock Drops 7% Amid Musk Trump Disagreement

Tesla's stock price experienced a significant drop of 7%, largely attributed to the political disagreement between Elon Musk and former U.S. President Donald Trump. Musk's announcement of the formation of the "American Party" marked a clear break from his previous political alliance with Trump. This decision was prompted by Musk's strong opposition to the "Big Beautiful Act," a proposed legislation that Musk believes will exacerbate U.S. debt, a stance that directly conflicts with Trump's views.

The "American Party" aims to participate in the 2026 midterm elections, focusing on influencing key congressional decisions by targeting a few strategic seats. Unlike traditional political parties, Musk's party plans to concentrate its efforts on 2-3 Senate seats and 8-10 House districts. The party's political ideology emphasizes reducing debt spending, promoting the development of AI technology, and relaxing regulations, addressing public dissatisfaction with current policies.

Tesla is currently facing several challenges that could impact its market position. One of the key issues is the potential inability of older Tesla models to support the Full Self-Driving (FSD) feature. This has led to a collective lawsuit in the Chinese market, where owners are demanding refunds for FSD fees or hardware upgrades for their vehicles. The financial implications of this lawsuit could be substantial, potentially costing Tesla billions in refunds or upgrade expenses.

For investors, these developments have undoubtedly affected market sentiment. The political and legal challenges Tesla is facing could influence its stock performance and overall market perception. However, for users of BiyaPay, the platform offers USDT trading services for U.S. stocks, enabling convenient participation in the global stock market without the need for an offshore account. This allows for real-time stock trading and leverages the platform's efficient, transparent trading system to better navigate market fluctuations.