The feud between Trump and Musk is dragging Wall Street down.
After initial gains, Wall Street is now on its knees at the close of trading. For days, Tesla CEO Musk has been lashing out at the US government's tax law. Now US President Trump is threatening to withdraw orders from the tech billionaire. The electric car manufacturer's stock is plummeting.
The escalating dispute between US President Donald Trump and Tesla CEO Elon Musk sent the US automaker's shares plummeting this evening. With a 14 percent drop, the company lost around $150 billion in market value. The conflict between Trump and Musk also weighed on Wall Street. In addition, speculation about further developments in the US tariff dispute with China caused unsettled trading. The feud between Trump and Musk was triggered by a tax and spending bill pushed by the president. Musk recently intensified his criticism, while Trump accused him of opposing the bill because it would eliminate tax credits for electric vehicles. "The impact on Tesla stock is obvious," said Mark Spiegel, portfolio manager at Stanphyl Capital. However, he doesn't see any significant consequences for the rest of the market, apart from the minor impact on indices and index funds. "The overall stock market has enough problems, but Tesla isn't one of them." Meanwhile, after a phone call between US President Donald Trump and Chinese President, stock market traders are hoping for a de-escalation in the recently reignited tariff conflict. According to Trump, the conversation lasted about an hour and a half and ended with a very positive outcome for both countries. Trump also announced that delegations from both countries would meet shortly. The heads of state have also invited each other. "I have no idea what the outcome will be." "That's exactly what makes investing so difficult right now," said Jed Ellerbroek, portfolio manager at Argent Capital Management. "I think it's less about predicting what Trump will do than about building a portfolio that can thrive even in unpredictable circumstances.#TrumpVsMusk