 "Tesla to launch its robotaxi services in Austin by June 12. AFP")
The Trump-Musk public fall-out has resulted in Tesla’s shares free-falling late on Thursday, with the carmaker’s shares ending the day down 14 per cent, wiping off $150 billion in market value.
Tesla CEO Elon Musk has entered a public altercation with US President Donald Trump, days after he walked out of the doors of the White House, marking the end of his time as a government official. In what began as a disagreement over Trump’s tax bill, Musk’s remarks have now reached the president, who has started calling out the former Doge chief.
Investors watched the unfolding drama with growing worry about what the fracas could mean for Musk’s business empire. The carmaker’s shares ended the day down 14 per cent, wiping off $150 billion in market value on a day absent other news about the company.
Musk’s spat with Trump led traders to dump Tesla shares after the two entered a feud over the president’s tax bill. Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases.
Clashing publicly with Trump could create significant challenges for Tesla and Elon Musk’s broader business ventures. The US Department of Transportation oversees vehicle design regulations and would play a key role in determining whether Tesla can move forward with large-scale production of robotaxis lacking pedals and steering wheels.
“Elon’s politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,” said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network.
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View AllThe president has also floated the idea of ending government subsidies and contracts for the companies run by Elon Musk as a way of saving money.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it,” Trump said on Truth Social.
With inputs from agencies