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What caused Tesla's stock to drop 14% recently?
Tesla's stock plummeted 14% on Thursday, marking the largest single-day loss in the company's history. This drop was triggered by a public feud between Elon Musk and Donald Trump, who threatened to cut federal contracts and subsidies for Musk's companies due to Musk's criticism of Trump's tax-and-spending bill. The market reacted negatively, resulting in a loss of $153 billion in market value.
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How is the feud between Elon Musk and Donald Trump impacting Tesla's market value?
The ongoing feud between Musk and Trump has raised significant concerns among investors about Tesla's future profitability. Trump's threats to end government support for Musk's companies have led to fears of reduced federal contracts and subsidies, which are crucial for Tesla's operations. This uncertainty has contributed to the stock's volatility and overall decline in market value.
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What are analysts saying about Tesla's future after this stock drop?
Despite the recent stock drop, some analysts maintain a bullish outlook on Tesla's future. Analysts from Wedbush Securities believe in the company's potential in the autonomous vehicle market. However, others, like James Stanley from StoneX, caution that the stock may be overvalued given the current political climate and the implications of the feud with Trump.
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What was the market reaction to Tesla's stock rebound on Friday?
Following the significant drop on Thursday, Tesla's stock saw a slight rebound on Friday. However, it remained down about 13% for the week. This mixed reaction indicates that while some investors may see a buying opportunity, many are still cautious due to the ongoing tensions between Musk and Trump and the potential impact on Tesla's financial health.
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What are the long-term implications of the Musk-Trump feud for Tesla?
The long-term implications of the feud between Musk and Trump could be substantial for Tesla. If Trump's threats to cut federal support materialize, it could hinder Tesla's growth and profitability. Investors are closely monitoring the situation, as any changes in government policy could significantly affect Tesla's operations and market position.