Tesla CEO Elon Musk’s public disagreement with the Trump White House over the president’s budget bill has caused a significant stir in the business world. The once positive partnership between Musk and Trump now appears to be on shaky ground, leading to a drastic drop in Tesla’s stock price.
Last November, Tesla’s stock price reached new heights following President Trump’s return to the White House. Investors were optimistic about the potential benefits of Trump’s administration for Elon Musk and his various businesses. Musk, who was a significant campaign financier for Trump, even took on a leadership role in cutting federal spending.
However, the relationship between Musk and Trump has taken a sharp turn in recent days. Tesla’s stock price plummeted by 14% after Trump publicly criticized Musk and threatened to end government contracts with his companies. The dispute stems from disagreements over the removal of electric vehicle tax credits in Trump’s budget bill, which could impact the demand for EVs in the US.
Trump’s social media posts attacking Musk and his businesses have further fueled the feud. Musk, in turn, has lashed out at Trump on his own social media platform, citing concerns about the bill’s impact on the federal deficit. The escalating conflict has raised uncertainty among investors and has cast a shadow over Tesla’s future prospects.
The fallout from the dispute is already being felt, with many questioning the impact on Tesla’s customer base and overall business operations. Musk, who once enjoyed widespread support, now faces backlash from both left- and center-left-leaning customers over his role in federal job cuts and aid program reductions.
As Musk navigates this challenging situation, the future of Tesla remains uncertain. The once-promising partnership with Trump has soured, leaving Musk to reassess his business strategy and relationships with key stakeholders. Only time will tell how this rift will affect Tesla’s trajectory in the long run.