Tesla Shares Plummet Amid Public Spat Between CEO Elon Musk and President Trump

Strategic Insights -

The public spat between CEO Elon Musk and President Trump has sent shockwaves through the market, causing Tesla's shares to plummet over 14% on Thursday. The feud began when Trump threatened to cancel government contracts with Musk's companies, prompting Musk to slam the Trump-backed budget reconciliation bill, calling it a "disgusting abomination." The situation has left investors like Jim Chanos, a renowned short-selling investor, relieved, as he had a large short position on Tesla stock.

Key Takeaways:

  • Tesla's shares dropped over 14% on Thursday following a public spat between CEO Elon Musk and President Trump.
  • Trump threatened to cancel government contracts with companies belonging to Musk, leading to a significant decline in Tesla's market capitalization.
  • Tesla's market capitalization fell by more than $150 billion on Thursday, removing it from the exclusive group of publicly traded firms worth more than $1 trillion.
  • Musk resigned from his position in the Trump administration last week and has already slammed the Trump-backed budget reconciliation bill, calling it a "disgusting abomination."
  • Tesla has received discouraging sales news in recent days, with auto industry associations in numerous European nations reporting sales figures for May showing Tesla sales down while overall EV sales increased.
  • Despite the lackluster sales, some analysts see the upcoming debut of fully autonomous Tesla rides in Austin, Texas, next week as a potential positive catalyst for the company.
  • Tesla's stock price has lost roughly one-third of its worth since the beginning of the year, but is still up 60% over one year.
  • The public feud between Musk and Trump may have a lasting impact on Tesla's stock price and the company's future outlook.

Statistics:

  • Tesla's shares dropped by 14% on Thursday following the public spat between CEO Elon Musk and President Trump.
  • Tesla's market capitalization fell by more than $150 billion on Thursday, a significant loss.
  • Tesla's stock price has lost roughly one-third of its worth since the beginning of the year, but is still up 60% over one year.
  • Tesla's stock price is currently down 30% Year-To-Date (YTD).

Sources:

  • "Trump threatens to cancel government contracts with Elon Musk's companies after public spat" by IE Online Media Services Pvt. Ltd., distributed by Contify.com.
  • "Jim Chanos: Tesla breakup with President Trump was 'most predictable breakup ever'" by CNBC.
  • "Elon Musk slams Trump-backed budget reconciliation bill, calling it 'disgusting abomination'" by Forbes.
  • "Tesla's stock price drops 14% amid public feud between Elon Musk and President Trump" by CNN Business.