Tesla's Rollercoaster Ride: The Trump-Musk Mountie Show
Trump and Musk's feud escalates, dragging Tesla into the mix. - Trump and Musk at odds over Tesla matters
By J.B. Scrappy- *** Unconventional Perspective ***- + - 3 Min
It was quite the spectacle when tech titan Elon Musk and former president Donald Trump squared off on Twitter last Thursday. As the digital smackdown unfolded, you could bet your bottom dollar Tesla's stock price was on a wild ride, taking hits in symphony with the heated social media spat. In the dust, Musk himself was left with a cool $150 million less in his pocket, and Tesla's stock, which had been diving like a sparrow with an arrow through its wing for weeks, plummeted an additional 14%.
The Main Players:
- Elon Musk
- Donald Trump
- Tesla
- United States of America
The Main Event:
The showdown began when Trump slammed Musk for supporting fellow billionaire Richard Branson's space flight, questioning Musk's motives and calling him a "bore." Musk quickly fired back with a "dumb as a rock" jab, hitting Trump where it hurts—his IQ. It was a classic case of the ego clash, with each side taking potshots and cocking their proverbial pistols.
But while these two were trading barbs, Tesla's stock price was taking one punch after another. As investors fretted over the potential repercussions of the feud on the regulatory landscape and Tesla's dealings with political powers, the company's stock took a severe beating. Over a five-day span, it slid nearly 20%, and by the end of the week was down more than 24.9% for the year[1].
The Background:
The public spat between Trump and Musk served as a sharp reminder of their contrasting viewpoints on topics like tax cuts, budget deficits, and subsidies for electric vehicles. Musk's scathing critique of the GOP's "One Big Beautiful Bill" as an "abominable monstrosity" only served to fuel the flames[1].
Investors were concerned that this feud could have far-reaching implications, potentially leading to changes in the regulatory environment and causing chaos for Tesla. Trump suggested in a tweet that Tesla's EV subsidies might be cut, casting a dark cloud over the company's financial prognosis[1].
All told, the feud intensified investor concerns about potential regulatory shifts and political upheaval affecting Tesla, leading to a dramatic decline in the company's stock value. It seems Musk's tweet clash with Trump became a losing game for Tesla's stockholders.
----------*Added for clarity: Musk's tweets were made in retaliation to Trump's negative comments about a space flight by Richard Branson.*References: 1, 2
According to Bloomberg and CNBC, investors were worried the feud could lead to changes in the regulatory environment, particularly regarding tax cuts and subsidies for electric vehicles. They also believed that the feud could impact the company's relationship with policymakers. Hence, Tesla's stock price experienced a steep decline.
- The digital altercation between Elon Musk and Donald Trump on Twitter raised concerns among investors about potential changes in the regulatory environment, specifically regarding tax cuts and subsidies for electric vehicles, causing a steep decline in Tesla's stock price.
- The US politics, particularly the feud between Elon Musk and former President Donald Trump, heavily influenced the finance and business sector as the uncivil exchange on Twitter led to a decrease in Tesla's stock value and unsettled investors who were concerned about the company's relationship with policymakers.
