In a stunning development that’s shaking both Wall Street and Silicon Valley, Tesla stocks plunged by over 6% today following a fresh barrage of criticism from former U.S. President Donald Trump. The fallout comes amid an escalating feud between Trump and Tesla CEO Elon Musk, once perceived as uneasy allies in the nexus of politics and technology.
Tensions between the two magnates reached a boiling point after Trump, during a campaign rally in Florida, lambasted Musk’s business dealings, accusing him of “playing both sides” and threatening to “take a closer look” at Tesla’s federal contracts and subsidies if re-elected. The remarks spooked investors, sending Tesla shares into a downward spiral and sparking concern over the future regulatory landscape for Musk’s vast empire.
🚨 Market Jitters and Investor Concern
Traders reacted swiftly to Trump’s remarks, fearing political retaliation could directly impact Tesla’s operations, particularly its partnerships with government agencies and its dominance in the EV sector. “When someone with Trump’s influence says he’s coming after a company, markets pay attention,” said a senior analyst at Bernstein.
The dip also reflects broader worries about Tesla’s reliance on political goodwill, especially in the U.S. where federal EV credits and infrastructure deals remain pivotal to its growth strategy.
🧨 A Feud with Economic Ripples
This isn't just a clash of personalities — it's a battle with far-reaching financial consequences. The Trump-Musk conflict has now morphed into a power struggle that could ripple across tech stocks, campaign contributions, and federal policy, especially as the 2024 U.S. election season heats up.
Musk, for his part, has fired back on X (formerly Twitter), stating: “The people should decide the future — not political vendettas.” However, investors are already bracing for volatility, with many reallocating away from Tesla in the short term.
📉 What's Next?
Analysts predict continued market turbulence if the feud escalates. Tesla’s long-term fundamentals remain strong, but short-term uncertainty could weigh on investor confidence. Meanwhile, political pundits suggest Trump’s attacks may be aimed at consolidating populist support by targeting tech elites.
As one analyst noted: “This isn't just about Tesla stock. It's about the intersection of power, tech, and politics — and right now, it’s on fire.”