Tesla Stock Plummets 14.26% Amid Musk-Trump Feud

On June 5, local time, Tesla's stock experienced a significant decline, dropping by 14.26%. This sharp decrease resulted in a market capitalization loss exceeding 1500 billion USD, which is equivalent to over 10,000 billion CNY. Consequently, Tesla's total market value plummeted to 9170 billion USD.

The dramatic fall in Tesla's stock price was largely attributed to the publicized conflict between Tesla CEO Elon Musk and former U.S. President Donald Trump. Musk had been vocal about his dissatisfaction with Trump's administration, particularly regarding the cancellation of mandatory electric vehicle sales regulations. In response, Trump expressed his disappointment with Musk's actions, stating that the cancellation of these regulations was a straightforward way to save hundreds of billions of dollars in the budget.

The public exchange between Musk and Trump led to a broader market reaction. All three major U.S. stock indices closed in the red. The Dow Jones Industrial Average fell by 0.25%, the Nasdaq Composite Index dropped by 0.83%, and the S&P 500 Index declined by 0.53%. This market turmoil highlighted the sensitivity of tech stocks to geopolitical tensions and the influence of high-profile figures on market sentiment.

Musk's criticism of Trump's administration was not limited to the cancellation of electric vehicle regulations. He had also been vocal about his opposition to Trump's tax reform bill, urging U.S. citizens to contact their legislators to "kill" the bill. Musk's public statements and actions have drawn significant attention and have had a notable impact on market dynamics.

In response to Musk's criticism, Trump took to his social media platform to express his frustration. He stated that Musk was "losing patience" and that he had asked Musk to leave, revoking the electric vehicle "mandate" that Musk had been pushing for. This exchange further intensified the market's reaction, contributing to the overall decline in stock prices.

The conflict between Musk and Trump underscores the complex interplay between corporate leadership, government policy, and market sentiment. The public nature of their disagreement has amplified its impact, leading to significant market movements and highlighting the interconnectedness of various sectors within the economy.