Tesla’s stock price has dropped significantly following a public feud that is ongoing between CEO Elon Musk and President Donald Trump.
The stock fell by approximately 14.3%, erasing about $150-$152 billion in market value, marking one of Tesla’s worst single-day declines in recent years.
The conflict stemmed from Musk’s critism and opposition to a Trump tax and spending bill due to its projected $2.4 trillion increase in the federal deficit and the elimination of electric vehicle tax credit which is critical to Tesla’s sales.
Donald Trump retaliated by suggesting on Truth Social that the government could terminate Musk’s companies’ federal contracts.
Not only that, he also threaten to terminate subsidies, including those for Tesla and SpaceX, which has received nearly $20 billion in federal contracts since 2008.
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It is clear that Tesla Investors grew concerned about potential regulatory challenges for the company.
One of the major concern is particularly regarding its autonomous vehicle initiatives with fears Trump’s administration could impose stricter rules or delay approvals.
