title: Trump's Tussle with Musk Sends Tesla Shares Nosediving, Erasing $150 Billion in a Day
Tesla's valuation has dropped by an estimated 150 billion dollars.
Did things just get rougher for Tesla, even as they were already steeped in troubles? CEO Musk's rowdy spat with the Prez slashes Tesla shares, taking a hefty $150 billion off the company's market value in just one day. Musk's pocketbook takes a beating too. But that ain't all.
The feisty spat between Elon Musk and Prez Trump takes Tesla shares for a spin. The electric vehicle giant's stock dips more than 14 percent in US trades, erasing a whopping $150 billion from its market value.
Bloomberg's financial news service estimates that Musk loses around $34 billion from his bank account in a day, thanks to Tesla's stock rate drop.
Trump's threat of stripping Musk's companies of government subsidies and contracts hang heavy in the air. Musk runs SpaceX too, a company crucial to the US's space travel and military rocket launches. Musk, in turn, backs impeachment proceedings against Trump on Twitter, responding to the Tesla stock plunge.
Following Trump's victory in the November elections, Tesla's stock value soared due to speculations over Musk's connections with Trump. Tesla has been under scrutiny by various traffic safety agencies for years.
title: Musk's Takedown: The "Big, Beautiful Bill" Feud and Tesla's Crashing Stocks
The feud between Trump and Musk has far-reaching implications for Tesla and Musk's personal wealth:
Impact on Tesla's Stocks
- Stock Market Fluctuations: Public scraps between notable personalities, like Musk and Trump, stir up market fluctuations. Investors may dump Tesla stocks due to perceived instability or uncertainty, causing short-term stock price drops.
- Brand Image: Musk's public feuds can harm Tesla's business image. Negative perceptions can shake consumer trust, influencing sales and, by extension, stock performance.
- Government Agreements: Trump's moves against Musk's government contracts could directly impact Tesla's earnings. Tesla primarily serves consumers, but losing government contracts or favorable policies may influence investor faith.
Musk's Personal Threat
- Stock Portfolio: As a significant Tesla shareholder, Musk's fortune hinges on the company's stock performance. A decline in stock prices due to negative perceptions from the spat can cut into Musk's wealth.
- Investor Confidence: Negative press arising from the feud might diminish investor confidence in Musk's leadership and Tesla's vision, impacting fundraising efforts and company valuation.
- Personal Reputation: Musk's reputation is entwined with his companies. A damaged rep could affect his ability to attract investors and talent, potentially impacting company growth and valuation.
In brief, while the spat might not strike Tesla's operational balance momentarily, it could sway investor sentiment and consumer perception, which could affect both Tesla's stock values and Musk's personal fortune.
Sources: ntv.de, chl/rts/dpa
- Tesla Motors
- Elon Musk
- Donald Trump
- Stock Markets
- The feud between Elon Musk and Donald Trump could have significant impact on Tesla's employment policy, as stock market fluctuations and diminished investor confidence might affect the company's financial resources, thereby potentially impacting workforce stability.
- The disagreement between Musk and Trump could also influence Tesla's business, specifically through technology and innovation, as government subsidies and contracts are crucial for funding research and development, which could be affected if Musk's companies lose favor with the administration.
