Musk vs. Trump: Tesla Stocks Plunge, Losing $150 Billion in One Day
Tesla's market value plummets by a staggering $150 billion.
Get the Scoop Facebook Twitter WhatsApp Email Print Copy Link Elon Musk's feud with President Trump leaves Tesla stock in shambles, losing a whopping $150 billion in market value. Here's what's going down.
The ongoing squabble between Tesla CEO Elon Musk and US President Donald Trump has steered the electric vehicle pioneer's shares on a nose-dive. The head-to-head caused Tesla's stock to slide by over 14% during US trading, a blow that decimated the company's market value.
Bloomberg's financial news service estimates that Elon Musk took a personal hit of nearly $34 billion, with his net worth tumbling to $335 billion (approximately €293 billion).
The exchange of heated words started when Trump threatened to withdrew government subsidies and contracts from Tesla. SpaceX, another one of Musk's businesses, is critical to US astronaut flights and military rocket launches, placing Musk in a precarious position. Trump's ironic retort came in the form of Musk's impeachment advocacy on Twitter following the Tesla stock plunge.
Post the US presidential election in November, investors anticipated significant gains for Tesla due to Musk's proximity to Trump. Despite years of traffic safety authority investigations, Tesla had managed to maintain its upward trajectory.
Buckle Up! Politics in the Driver's Seat ## Tesla's Stock Crash: Musk Faces Personal Financial Woes?
The bumpy ride for Musk doesn't end there. His extreme political views have impacted Tesla's customer base, with some potential buyers boycotting the brand. The controversy extends beyond protests to arson attacks against Tesla vehicles.
Musk's staggering personal losses due to Tesla's market tumble might start causing problems for him personally. The tech titan is known for securing loans using his Tesla shares, a strategy that makes him appear as the world's wealthiest individual on paper. Should the stock price drop below certain levels, additional collateral might be required. Tesla's 2024 annual report reveals that Musk pledged nearly 236 million of his Tesla shares as collateral for the loans.
Source: ntv.de, chl/rts/dpa
- Tesla Motors
- Elon Musk
- Donald Trump
- Stock Prices
Some Finer DetailsElon Musk's political stance and dispute with President Trump weave complex implications for his personal finances and Tesla's stock value.
Personal Financial Situation- Political Donations: Musk has been a significant contributor to political causes, more so for the 2024 elections, spending over $239 million through his America PAC to back Trump's initiatives[1][2]. Although political spending can affect his wealth, it doesn't directly impact his overall financial status as a multibillionaire.- Financial Implications of Political Disputes: Musk's sparring with Trump may influence access to government contracts or favorable policies, potentially impacting his business interests. Musk's extensive business ventures, which include SpaceX and Neuralink, serve as a financial buffer against significant impact from political squabbles.
Tesla's Stock Value- Stock Fluctuations: Tesla's stock is sensitive to Musk's public statements and actions, particularly in the face of political controversy. The disagreement with Trump led to a dip in Tesla stock on the day their feud escalated[3]. Such volatility can shatter investor confidence and negatively impact the stock's value.- Market Perception: Musk's influence on Tesla is substantial, and each political action can shape market perceptions. If investors perceive Musk's political stance as damaging Tesla's relationship with the government or affecting regulatory environments (e.g., electric vehicle incentives), it could further impact stock performance.- Regulatory Environment: Musk's opposition to regulations, such as Trump's Big Beautiful Bill, can directly impact Tesla's business landscape[3]. If these policies are enacted, they could potentially impact Tesla's profitability and stock value.
In essence, while Musk's political stance and feud with Trump may create temporary turmoil in Tesla's stock and influence his political spending, his diversified business interests and immense wealth offer a safeguard against significant long-term financial repercussions.
- The dispute between Elon Musk and President Trump affects not only Tesla's stock value but also employment policies within the European countries, as the company's financial instability might impact hiring and investment decisions.
- As technology plays a crucial role in Tesla's business, any further decline in its stock value could hinder the company's ability to finance advancements in battery technology and target sustainable, long-term growth in the electric vehicle market.
