What's happened
Elon Musk's public feud with Donald Trump has led to significant volatility in Tesla's stock, which fell 14% on Thursday after Trump threatened to cut federal contracts. The spat arose from Musk's criticism of Trump's tax bill, raising concerns about the future of Musk's businesses.
What's behind the headline?
Key Insights
- Stock Volatility: Tesla's stock dropped 14% in one day, marking its largest decline since 2020, reflecting investor anxiety over Musk's relationship with Trump.
- Government Contracts at Risk: Trump's threats to cut federal contracts and subsidies could cost Tesla billions, particularly affecting its autonomous driving initiatives.
- Market Sentiment: Analysts are divided; some believe the feud will harm Tesla's long-term prospects, while others maintain a bullish outlook on the company's future.
- Media Dynamics: The conflict has drawn significant media attention, with conservative outlets expressing concern over Musk's accusations against Trump, particularly regarding Epstein.
- Future Implications: The ongoing feud may lead to a more hostile regulatory environment for Tesla, impacting its market position and investor confidence.
What the papers say
According to Bloomberg, the feud has resulted in a staggering $153 billion loss in Tesla's market value, with Musk's net worth dropping by $34 billion. The New York Times highlights that despite a brief rebound, Tesla's stock remains down 13% for the week, indicating ongoing investor concerns. The Independent notes that the conflict has created a rift within conservative media, with hosts expressing hope for reconciliation while grappling with Musk's serious allegations against Trump. This multifaceted coverage illustrates the broader implications of the feud on both Tesla's market performance and the political landscape.
How we got here
Tensions between Elon Musk and Donald Trump escalated this week after Musk labeled Trump's tax-and-spending bill an 'abomination.' Trump's subsequent threats to end government contracts for Musk's companies triggered a sharp decline in Tesla's stock price.
Go deeper
- What are the implications for Tesla's future?
- How are investors reacting to the stock drop?
- What did Musk say about Trump's tax bill?
Common question
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What Caused Tesla's Stock to Drop 14% Recently?
Tesla's stock recently experienced a dramatic drop of 14%, raising eyebrows and concerns among investors. This significant decline was largely attributed to a public feud between Elon Musk and Donald Trump over a controversial tax bill. As the situation unfolds, many are left wondering about the implications for Tesla's market value and future. Below are some common questions regarding this recent stock volatility.
More on these topics
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Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-foun
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.