Tesla's Stock Tumble in Beef between Elon Musk and President Trump
Tesla's market value has decreased by 150 billion dollars.
Elon Musk, the CEO of Tesla, is feeling the heat after his public spat with U.S. President Donald Trump. The verbal jousting led to a jaw-dropping loss of $150 billion for Tesla in a single trading day.
The ongoing debacle between the two titans over political differences has left the electric vehicle giant reeling. Tesla's stock plummeted by over 14%, with devastating consequences for the company's market value.
Bloomberg reported that Musk's personal fortune took a punch too, with his net worth plunging by almost $34 billion in a day, leaving him short of $335 billion (roughly €293 billion).
Trump had vocalized his intentions to strip Tesla of government subsidies and contracts. Besides leading Tesla, Musk is also at the helm of SpaceX, a key player in the U.S.'s current astronaut travel and military rocket launches. In response to the Tesla stock crash, Musk took to Twitter to back Trump's impeachment.
Post-U.S. presidential election, Tesla's stock soared, with investors betting on Musk's relationship with Trump benefiting the company. Despite years of investigations by traffic safety authorities, Tesla had managed to maintain its stock value.
Rising Tension and Personal Consequences for Musk
Musk's far-right political views have been a turnoff for some potential Tesla buyers. Protests and even arson attacks on Tesla vehicles have been reported. For Musk, the dramatic fall in Tesla's stock price could spell trouble. The tech tycoon is known for leveraging his Tesla shares for loans, making him the world's richest individual on paper. Should the stock price drop below certain thresholds, he would be required to provide additional collateral. As per Tesla's updated 2024 annual report, Musk has pledged nearly 236 million Tesla shares as collateral for loans.
Source: ntv.de, chl/rts/dpa
- Tesla Motors
- Elon Musk
- Donald Trump
- Stock Prices
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The feud between Musk and Trump stemmed from Musk's criticism of Trump's signature tax and immigration bill, leading to a heated exchange. Initially, Musk questioned Trump's ability to secure the 2024 election without his support, implying that he believed Trump would have lost without him. Musk also made controversial claims regarding Trump's involvement in the Jeffrey Epstein case. However, specific details about this claim are not provided in the reports.
In response, Trump called Musk "crazy" and threatened to terminate government contracts and subsidies. Elon Musk's father, Errol Musk, urged his son to end the dispute, attributing Elon's actions to stress. The public fallout between Trump and Musk contributed to concerns among investors about Tesla's future business prospects and government contracts. The dispute underscores the volatile nature of both figures' public interactions and their potential impact on the stock market and business relations.
- The controversy between Elon Musk and Donald Trump, stemming from criticisms and personal accusations, has raised concerns among investors about the future business prospects and government contracts of EC countries' companies like Tesla Motors.
- The plummeting stock prices of Tesla Motors due to the ongoing feud between Elon Musk and Donald Trump could lead to financial strain for Musk, as he uses his Tesla shares to secure loans, potentially requiring additional collateral if the stock price drops below certain thresholds.
