Tesla shares plummeted on Thursday as conflicts broke out between the company's CEO Elon Musk and President Donald Trump broke out.
Tesla's stock price fell about 14.3% on the same day, and its market value evaporated by more than US$150 billion. It was Tesla's worst day since March. At that time, Tesla's stock price fell about 15% due to strong consumer opposition to Musk's role in the Trump administration.
The president and the world's richest man publicly criticized each other as Tesla shares fell Thursday, after Musk criticized Trump's "a great beauty bill." The comprehensive tax and spending proposal was passed in the House last month and is now facing increasing resistance in the Senate. In addition to tax cuts and cuts in federal spending, the bill has gradually eliminated incentives for electric vehicles, which are the main source of wealth and influence for Tesla and Musk.
Until recently, Musk was one of the president's closest ally and biggest supporters, who donated millions of dollars to the Trump campaign and later led the controversial administration's efficiency ministry under the Trump administration. On May 30, Musk expressed his dissatisfaction with the huge tax and expenditure plans in an interview, and then resigned from the government. A few days later, he began to slam the X company's bill, calling it "a disgusting ugly thing."
The dispute between the two further escalated on Thursday. Trump told reporters that although he and Musk had a good relationship, "I don't know if we will continue like this" and "I'm very disappointed with Musk. I have helped Musk a lot."
They continued to launch a series of other attacks on each other: Trump hinted that he had fired Musk's administration and publicly threatened to cancel a multi-billion-dollar government contract with Musk's business; Musk shared a post calling for the impeachment of Trump and replaced by the vice president, even without evidence that Trump was in the Epstein archives, a set of documents related to the late financier and convicted sex offender Jeffrey Epstein.
Tesla's stock price plummeted on Thursday, marking the latest twist in the company's turbulent period when Musk entered Trump's inner circle (now withdrawing again). Although Tesla shares rose after Trump's election in November, it fell sharply earlier this year as many consumers boycotted the company and protested Musk's growing role in the administration.
