Market Shock: Musk vs. Trump Brawl Slashes Tesla’s Value by $152 Billion

In a whirlwind of digital animosity, tech mogul Elon Musk and former President Donald Trump have unleashed a financial maelstrom, wiping a staggering $152 billion off Tesla’s market capitalization. As stated in WIRED, the fallout began when Musk used his platform, X, to denounce Trump’s newly drafted “One Big Beautiful Bill.” This proposed legislation appears to be a battleground for immigration policy, energy subsidies, and a massive anticipated increase of the national deficit.

The Online Showdown Escalates

The first shots were fired on social media, with Musk and Trump exchanging barbs. Trump retaliated by suggesting Musk’s opposition stemmed from his reliance on electric vehicle tax credits. The drama intensified as Musk alluded to Trump’s alleged involvement in the Epstein scandal, raising questions about unpublicized documents. Tesla’s shares took a nosedive of around 14 percent, reflecting investor jitters over the controversy.

A Cascade of Business Threats

With this very public spat, high stakes hang in the balance. Trump has threatened to terminate lucrative governmental subsidies and contracts benefiting Musk’s ventures, like Tesla and SpaceX. In a bold counter-move, Musk declared his intention to halt SpaceX’s Dragon spacecraft use, vital for NASA missions. Political heavyweight Steve Bannon has even urged Trump to open investigations into Musk’s immigration status, further heating the fray.

Implications for Tesla

This tumultuous clash arrives at a pivotal moment for Tesla. The long-awaited debut of its robotaxi service looms in Austin, amidst mixed sentiment regarding the company’s direction. Musk aims to transition Tesla into a robotics leader, overshadowing its electric vehicle focus. But forthcoming releases from his AI venture, xAI, face delays, adding a layer of uncertainty to an already shaky outlook.

Investor Nerves on Edge

Tesla’s most recent financial outcomes haven’t fared well, their weakest in years. Production mishaps, especially in Europe, have pushed the company towards downscaling plans for its affordable EV lineup. To allay fears, Musk has reassured stakeholders of his dedication to Tesla, a promise met with skepticism in current turbulent waters.

Public Reactions and Protest Movements

The Musk-Trump collision ignites widespread public discontent. Protesters worldwide gather, propelling the Tesla Takedown movement, a force urging swift and decisive divestment. The succinct rallying cry—“Sell, Sell, Sell”—captures the urgency among Tesla watchers.

The Musk vs. Trump faceoff reveals a sobering reality of their dual influence over vast business empires. The outcomes of their feud remain in flux, but as the dust settles, the financial ramifications speak volumes of a battle where the stakes could not be higher.