Musk and Trump’s Split Triggers Market Storm, Tesla Stock Plummets Over 14%!
The "Century Battle" between Musk and Trump has finally erupted! Once political allies, they have now torn each other apart over the tax bill, with Musk bluntly stating that Trump's tax proposal poses a huge threat to Tesla, even calling it "disgusting." As a result, Tesla's stock plummeted by 14%, wiping out $152 billion in market value and dropping below the trillion-dollar mark, causing panic in the market.
Market Panic Reaction:
Investors are uneasy about Trump’s tax proposal, fearing it may eliminate electric vehicle tax credits and impose new fees on owners, which could mean Tesla could lose over $1 billion annually.
Musk's Strong Retaliation and Calm Shift:
After Tesla's stock price dropped significantly, Musk retracted his decision to retire the SpaceX Dragon spacecraft, stating that “taking a step back” is a good suggestion. Nevertheless, he continued to strongly criticize Trump's tax proposal, directly pointing out the “disgusting pork” in the bill.
Republican Dilemma in the Political Storm:
As a major donor to the Republican Party, Musk's public backlash has put the party in a dilemma, with Trump supporters joining the fray, even calling for Musk’s expulsion. The White House is actively mediating, trying to quell this political storm.
Uncertainty Surrounding the Future of Tesla and SpaceX:
The conflict between Musk and Trump not only affects the stock market but could also have long-term implications for the future of Tesla and SpaceX. Tesla heavily relies on government incentives, and if the bill passes, it may weaken the company's profitability.
Market Outlook More Uncertain:
This dispute is not just a private squabble but has become a large-scale risk affecting the market. Reconciliation might restore market confidence, but if the dispute escalates, Tesla's stock price could face more turbulence.
Conclusion:
The showdown between Musk and Trump has transcended the realm of business, becoming an unstable factor in the global capital market. The plummet of Tesla's stock price is just the tip of the iceberg; will we face even more serious market turmoil in the future? We shall wait and see!
