The Trump-Mascion caught in the crossfire: Tesla Stock Sink Fighting; $ 380BN wiped out the biggest disadvantage of 2025
The unexpected political marriage between US President Donald Trump and Tech billionaire Elon Musk has ended in a fiery public divorce with shares of Tesla. Musk began a decline after Trump’s new tax-and-cost bill openly slammed on social media. In response, Trump threatened to cut government contracts for both Tesla and SpaceX. The political conflict added Tesla’s existing troubles, which include slowing down the demand for electric vehicles and controversial ties of Kasturi for far-flung groups. Since January, the company has reduced the market price by more than $ 380 billion, leading to the largest loser among the major global shares this year.As a result, Tesla is now the worst performing Large-Cap stock of the year, with its market capitalization, the Reuters report has fallen from 29.3% to 917 billion dollars. In the beginning of 2025, the company, which is in the eighth position globally in the market price, has now slipped to tenth place.The White House has stepped since then arranged a call with musk to reduce stress. Despite a small rebound in Tesla’s shares on Friday, widespread damage appears.Meanwhile, Apple has also faced a difficult year, which has fallen into the third most valuable company globally. Its $ 2.99 trillion market cap shows a 20% decline this year due to slowing down trade tension under the AI ​​challenges and Trump administration this year.
Tesla share price unstable after Trump-Mascul’s quarrel
Tesla’s shares on Thursday recorded a 14% decline, eliminating the market price by more than $ 150 billion, their biggest single-day loss on records, a public fight between two business men. The struggle rapidly criticized Trump’s tax-and-cost bill, which proposes to abolish $ 7,500 EV subsidy by the end of 2025.Celloff hit wide markets including Destiny Tech 100 Inc., with a significant spacex share, which falls 13%. According to Ortex, short sellers received a profit of about $ 4 billion from Thursday’s accident, the second largest single-day profit.However, Tesla’s shares recovered some grounds on Friday. At 9:40 am, the stock climbed 5.2% to $ 299.46, when Musk appeared open to increase the musk, combining the investor Bill Acman for stress. Reports also show that the White House collaborators are arranging a call with musk to cool the cracks.The Thursday accident partially wiped out the benefits before the announcement of a driverless “robotaxi” rollout in Austin, Texas of Texas. Nevertheless, the stock shut down the week 15%, its worst weekly performance since October 2023.Year to year, Tesla’s shares have declined by 22%, which is the worst artist among the “luxurious seven” technical shares, despite that the world’s most valuable automaker is about 1 trillion market cap. Nevertheless, its evaluation is estimated to be 140 times earnings, increasing concerns between growing political risks and regulator uncertainty.
What is wrong between Musk and Trump?
Elon Musk stepped out of his role in the Trump administration last week following pressure from Tesla shareholders. While the partition seemed favorable at the first time, things quickly became sour. Since his exit, Musk has openly criticized Trump’s major domestic policy -The New Tax Bill, which he called a “hateful hatred” on his social media platform, X.
He argued that the bill reduces cost cut efforts under the leadership of the government’s efficiency department (DOGE), a team was closely associated with Kasturi.In response, Trump accused Kasturi of being upset with the removal of an electric vehicle (EV) by removing the bill of encouragement and claimed that Musk fell against him as his once -favorable relationship no longer serves his interests.During an oval office address, Trump expressed his displeasure over the truth social, stating: “The easiest way to save money in our budget, billions and billions of dollars, Elon’s government subsidy and contracts have to be abolished. I always wondered that Biden did not do so!”Trump claimed that he had asked Musk to quit, citing his decision to remove the EV mandate. “Elon” was wearing thin, ‘I asked her to leave, I snatched her EV mandate, which forced everyone to buy an electric car that no one else wanted (that he knew for months I was going to do!), And he just went crazy! “Kasturi retaliated on X, claiming Trump’s 2024 electoral success and criticized his ingestion. Exchange became more hostile when Musk refers to Trump’s connection to Epstein files, “A good day, DJT!”Other companies of Elon Musk such as SpaceX and Starlink -Space Launch are now under investigation due to their political relations. These businesses often rely on favorable regulatory approval, helping by the government connection of the musk.Musk, who donated a $ 300 million for Trump’s campaign, claimed that Trump’s 2024 win would depend on his support. He later criticized Trump for being graced, supported his impeachment, and warned that Trump’s global tariffs could push the economy into recession.Tesla’s shares have seen major ups and downs since supporting Trump in July last July. Stock jumped on the expectation of low regulation for robotauxis, but later collapsed due to weak sales and backlash on Kasturi’s political participation.
What do analysts have to say about Trump-Mask Rift?
Some analysts believe that the Trump-Mascion Rifts cannot last long, as it may hurt both sides. A famous Tesla supporter told Bloomberg, “This is a junior high school battle, where these best friends are now becoming Frainemy.”He said, “This is a dignity zone position for all investors, because the last thing that investors want to see go from Trump Musk and a huge supporter from Tesla to an enemy,” he said.Meanwhile, most of the Congress Republican Trump is taking results. This is a positive sign for the proposed bill, which by the end of this year can remove a major tax credit for some Tesla and other EV models buyers up to $ 7,500 – seven years ago compared to employed.According to JP Morgan, if the bill passes, Tesla may damage the profit of about $ 1.2 billion in profit for the year.According to Paul Stanley of Granite Bay Wealth Management, public disagreement between Trump and Musk increases Tesla’s political and prestigious risks. He notes that the ongoing disputes can affect investor’s trust and market stability. He said, “Looking at the inherent powers of the office of the Presidential office, I do not see how it can be anything for Tesla and Kasturi but may be negative,” he said.
What is the next major deal for Tesla?
Tesla is an important milestone with the launch of Robotaxi service launched for 12 June in Austin, Texas. This development is important for Musk’s strategy to replace the company’s attention to autonomous vehicles and AI technology.Wesbash’s Ewes described the upcoming robotaxi launch as “the onset of autonomous vision and the next chapter of golden growth”, “Tesla accepting Tesla as” he oversold “. He advises investors to be patient.“I still believe that they remain each other’s friends and supporters, but this is definitely a slightly white-door period for Tesla investors,” said Evece.
