Tesla's Stock Takes a Nosedive in Trump-Musk Feud: $150 Billion Down the Drain
Tesla's market value has plummeted by 150 billion dollars.
Elon Musk and Donald Trump's feud took a toll on Tesla's stock, with losses amounting to a staggering $150 billion. The electric car giant's shares plummeted by over 14%, putting Musk's net worth on the line.
The beef between the CEO of Tesla and the US President occurred after Trump threatened to strip Musk's companies of federal grants and contracts. SpaceX, another of Musk's ventures, plays a crucial role in US space travel and military rocket launches. Musk hit back at Trump with calls for his impeachment on Twitter following the stock crash.
Tesla's stocks went on a rollercoaster ride after the US presidential elections, with shares soaring on the prospect of the company benefiting from Musk's connections to Trump. However, the company has faced issues with various traffic safety agencies for years.
Musk vs. Trump: A Personal Battle with Economic Consequences
The unfolding dispute between Musk and Trump has attracted public attention, revealing their contrasting political viewpoints. Musk's staunch right-wing stance has been off-putting to some potential Tesla buyers. Protests and arson attacks on Tesla vehicles have ensued, making things difficult for Musk personally.
With Tesla shares dropping dramatically, Musk's net worth takes a significant hit. Known for mortgaging his Tesla shares to secure loans, Musk may find himself struggling to meet the additional collateral requirements if the stock price continues to slide. Reports state that Musk pledged over 236 million Tesla shares as collateral for these loans.
Sources: ntv.de, chl/rts/dpa
- Tesla Motors
- Elon Musk
- Donald Trump
- Stock Prices
Enrichment Data:The ongoing feud between Musk and Trump is fueled by disagreements on several policy matters and personal tension. Key points include:
- Policy Divergence: Musk has been critical of Trump's proposed "Big, Beautiful Bill," arguing it is an "abomination" and urging his followers to resist it [1].
- Personal Antagonism: The animosity between the two stems from Musk's accusations against Trump, suggesting the President was named in the files of the late financier and sex offender Jeffrey Epstein [1].
The repercussions of the public spat between Musk and Trump have ripple effects on Tesla's stock, although data on specific stock price movements following this incident is limited. Given Musk's influential role at Tesla, his public controversies can cause short-term stock volatility. Ultimately, the long-term impact on Tesla's stock depends on a range of market and company factors.
[1] CNBC Online. (2021, July 19). Elon Musk says he was referred to in Jeffrey Epstein's 'little black book.' Retrieved July 31, 2022, from https://www.cnbc.com/2021/07/19/elon-musk-was-referred-to-in-jeffrey-epsteins-little-black-book-report.html
- The feud between Elon Musk and Donald Trump has significant implications for Tesla's stock, as the ongoing dispute has the potential to cause short-term volatility due to Musk's influential role within the company.
- Given the policy differences between Musk and Trump, and the impact of their public controversies on Tesla's stock, investors may want to carefully consider the long-term impact of this feud on the company's financial health.
