Musk and Trump have completely "broken ties," and this "war of words" has dragged Tesla down as well.

Due to the disagreement between Musk and Trump over proposed tax legislation and their public "spats," Tesla's stock price plummeted 14% overnight, erasing $153 billion in market value, marking the largest single-day drop on record. According to S3 Partners data, short sellers profited $4 billion during this decline.

Currently, Tesla's stock price has fallen 41% from the historic high reached in December.


This stock price trend reveals Tesla's extreme dependence on Musk's personal image.

Previously, Trump's electoral victory had at one point driven Tesla's stock price up, but with Musk getting involved in political controversies, the company's prospects have been overshadowed.

Wayne Kaufman, Chief Market Analyst at Phoenix Financial Services, commented that the whole thing is simply "absurd," and people in such high positions should understand, "Don't act like a middle schooler."

Kaufman analyzed:

"For Tesla, the particularly difficult thing is that you cannot separate the company's value from him (Musk)."

"Tesla's value is inextricably linked to Musk. When he is seen as a visionary, the stock price soars; when he gets embroiled in controversies, the stock price crashes. Now Musk has become the problem itself, so the stock price drop is not surprising."

Investor confidence is shaken, and Wall Street begins to sing a bearish tune.

Tesla's electric vehicle business was already weakening, and Musk's political stance and controversial actions have led some consumers to develop resistance to the brand. Now, Trump's threats could directly impact the government subsidies and contracts that Tesla relies on, further squeezing profit margins.

Adam Sarhan, CEO of 50 Park Investments, believes:

"Clearly, Musk and Trump are no longer on the same page. We don't know what consequences this will bring, and that's why people are selling off. There won't be a clear solution to this situation. If things escalate, Trump will ultimately prevail, and the impact on Tesla's stock price is still unknown. I think it is indeed possible that it could harm Tesla's profits."

"Investing in Tesla now is purely gambling. Even with a drop in stock price, Tesla's valuation remains high."

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized:

"This is a disaster for Musk. I can't imagine a rational businessman turning Trump into an enemy. The Tesla board has no intention of protecting shareholders; the only way to protect themselves is to sell off stock. I sold some Tesla shares today, and we've been reducing our holdings for years."

Dave Mazza, CEO of Roundhill Financial, believes:

"Clearly bearish in the short term. This conflict adds unnecessary complexity for Tesla. Because Robotaxi is coming, people have overlooked the car sales issue and are willing to give it long-term constraints. Now, if Robotaxi becomes a target and Musk himself also becomes a target, the market's 'dream premium' for the company will significantly shrink, and today's drop is proof of that."

Most critically, Tesla's valuation logic has long been built on Musk's "innovator" aura and future vision (such as autonomous taxis), rather than fundamentals. Wayne Kaufman pointed out incisively:

"If Tesla truly had immense intrinsic value, the stock price wouldn't collapse like this. It has never traded based on fundamentals."