Tesla Inc. shares reportedly fell by more than 14 per cent on Thursday, as the spat between CEO Elon Musk and President Donald Trump unsettled investors.
This situation is said to have led to a $150 billion reduction in the automaker’s market valuation.
Musk, who once oversaw the Department of Government Efficiency (DOGE), labelled a Republican-supported tax bill as a “disgusting abomination” and claimed that Trump’s previous presidential win was partially due to his backing.
Shortly thereafter, he declared his resignation from the department.
In retaliation, Trump threatened to withdraw federal subsidies and contracts associated with Musk’s companies, such as Tesla and SpaceX.
Following this exchange, Tesla’s stock fell to $284.7 by market close, resulting in the company’s valuation dropping below $900 billion.
The larger Nasdaq Index also decreased by 0.8 per cent.
The conflict has raised investor worries about Tesla’s prospects in the U.S., particularly regarding its scheduled launch of autonomous robotaxi services, which is expected to debut in Austin, Texas, later this year and expand to additional cities by 2026. At the same time, reports indicate that Tesla’s vehicle sales in Europe are also declining.
The company is experiencing renewed scrutiny over its autopilot system after the reemergence of a fatal 2023 crash reportedly linked to the software.
This latest development has also impacted Musk’s net worth, which fell by nearly $27 billion, although he still holds the title of the world’s richest person.
