As the feud continues to unfold, it remains uncertain how this will affect Tesla’s long-term trajectory and investor confidence.
The tensions between the two public figures escalated when Musk criticized Trump’s “One Big Beautiful Bill,” which eliminates electric vehicle tax credits, potentially slashing Tesla’s annual profits by $1.2 billion.
In response, Trump threatened to revoke government contracts with Musk’s companies, including SpaceX, which further fueled the conflict.
Musk retaliated by suggesting the decommissioning of SpaceX’s Dragon spacecraft, a crucial asset for NASA, although he later backtracked on these remarks.
The intensifying feud has sparked concerns among Tesla’s investors, leading to a sharp decline in the company’s stock price.
Despite a slight rebound in premarket trading, Tesla’s stock remains nearly 30% lower year-to-date, as investors grow increasingly uneasy about Musk’s political involvement and its potential impact on the company’s brand and future sales.
Analysts have urged caution, warning that the ongoing public dispute could further damage Tesla’s reputation and financial outlook.
This dramatic drop in stock value serves as a stark reminder of the risks high-profile leadership clashes pose to companies and their market performance. 📉
As the feud continues to unfold, it remains uncertain how this will affect Tesla’s long-term trajectory and investor confidence.
