Trump expresses his disappointment with Musk
Tesla Stock Crashes Amid Trump-Musk Rift
In a stunning turn of events, US President Donald Trump publicly criticized Tesla CEO Elon Musk, causing a steep 8% plunge in Tesla's stock on Wall Street.
The rift began when Musk took aim at Trump's tax-and-spending bill, dubbed the "One Big Beautiful Bill Act." This legislation aimed to phase out the $7,500 electric vehicle (EV) subsidy by the end of 2025. Musk vehemently opposed this, as it threatened Tesla's financial stability.
During an Oval Office meeting, Trump spoke to reporters, voicing his dismay with Musk. He pointed out Musk's past praise for him and lamented that it was the tax bill, not his personal conduct, that Musk should have criticized.
In a heated response, Musk claimed the bill had never been shown to him, and was passed in the middle of the night without proper scrutiny. He further alleged that Trump threatened to strip Tesla and SpaceX of their government contracts.
The intense exchange on social media platforms like X and Truth Social escalated investor anxiety, leading to a sharp sell-off in Tesla shares. The loss of potential government support and the end of EV subsidies also contributed to the stock's tumultuous drop, resulting in one of Tesla's sharpest declines in recent years.
In an ironic twist, Musk had previously boasted about helping Trump win the election. However, he now feels unappreciated. As the dust settles, both parties may need to navigate this contentious relationship carefully, considering its potential impact on their respective corporations.
The criticism from President Trump towards Elon Musk, the CEO of Tesla, led to a significant 8% drop in Tesla's stock, reflecting concern among investors. This decline may stem not only from the loss of potential government support but also from the proposed legislation, such as the "One Big Beautiful Bill Act," which could adversely affect the finances of the business by phasing out electric vehicle subsidies, thus affecting the general-news landscape of finance and technology. As the political rift continues, the average investor may feel uncertain about the future of Tesla, SpaceX, and the broader industry, with third parties like social media platforms playing a role in amplifying this anxiety.
