Tesla Stock Plummets Amid Musk-Trump Feud Over GOP Tax Bill

Tesla stock experiences a significant decline as investors react to the escalating feud between Elon Musk and President Donald Trump over the GOP tax bill. The dispute has raised concerns among investors about potential negative impacts on the company. Tesla’s shares dropped more than 10% following Musk’s comments suggesting Trump’s election was aided by his support, to which Trump responded by threatening to terminate governmental subsidies and contracts with Tesla.

Trump’s statement on Truth Social indicated a possible shift in federal support for Tesla, sparking fears among investors. The market value of Tesla decreased by over $100 billion, partially reversing the gains made since Musk announced the testing of an autonomous “robotaxi” service in Austin, Texas.

Analysts express concern that Trump may hinder the progress of self-driving technology in the U.S., which is crucial for Tesla’s future business model. The regulatory environment could become more stringent, potentially delaying Tesla’s plans to expand its robotaxi service to 20 or 25 cities next year.

Tesla’s stock had previously doubled after Trump’s election, reaching an all-time high in December. However, the recent feud and threats have caused a substantial pullback in the stock’s value. Musk had recently committed to focusing more on Tesla and its driverless taxi launch, which had previously increased the company’s market value by over $400 billion.