Trump-Musk Feud Sends Tesla Stock Tumbling 14%: Here’s How Elon Musk Took a Major Financial Hit
Tesla share price has fallen in four out of the last five sessions. The electric vehicle (EV) company has lost about $150 billion in value after Trump and Musk began their verbal war.
Tesla share price crashed more than 14% on Thursday as the public feud between CEO Elon Musk and US President Trump intensified. Tesla shares slumped as much as 14.26% to close at $284.70 apiece, contributing to a broader decline in tech stocks.
Tesla share price has now declined in four of the last five trading sessions. Since the public spat began, the electric vehicle (EV) maker has seen its market capitalization shrink by approximately $150 billion.
Musk has recently stepped up his criticism of the president’s sweeping tax and spending legislation. In response, Trump alleged that Musk’s opposition stems from the bill’s removal of certain tax incentives for electric vehicle purchases, Reuters reported.
Thursday’s selloff in Tesla shares followed Trump’s threats to revoke federal subsidies for Musk-led ventures after Musk voiced concerns over the administration’s economic policies. The slump in Tesla shares led a fall in Musk’s net worth by roughly $27 billion to $388 billion, according to Forbes.
The sharp decline in Tesla share price weighed heavily on the Nasdaq Composite, which dropped 162.04 points, or 0.83%, to close at 19,298.45. The Dow Jones Industrial Average fell 0.25% to 42,319.74, while the S&P 500 declined 0.53% to 5,939.30.
However, Tesla still remains the most valuable automobile company worldwide. Through Wednesday, Tesla’s market value stood at about $1 trillion, well above Toyota Motor’s $290 billion.
Tesla Stock Price Performance
Tesla stock has been under pressure since late last year, sliding nearly 20% over the past five sessions and almost 25% year-to-date. However, over the past one year, Tesla share price has rallied 63%, while the EV stock has jumped by a staggering 383% in five years.
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