Tesla shares suffered a significant loss in value following a heated exchange between US President Donald Trump and the company’s CEO, Elon Musk. Musk’s public and harsh criticism of a tax cut bill on the congressional agenda seriously affected Tesla’s market value. Shares fell more than 10 percent to below $300.
Trump-Musk tension sends Tesla shares tumbling
Elon Musk targeted Trump’s tax reform bill, which he had previously referred to as “a great piece of legislation,” in a post on the X platform a few days ago. Musk stated, “I’m sorry, but I can’t take this anymore,” describing the bill as “a disgusting piece of legislation.” This was followed by Musk linking Trump to the Epstein scandal in another post, further escalating the tension.
The bill at the center of the tension is seen as one of the cornerstones of Trump’s economic policy. However, Musk argues that the reform unfairly diverts public resources. Although there has been no direct response from the White House following his statements, it is known that some of the bill’s architects have reacted negatively to Musk.
The market decline came after Musk’s statements. Tesla shares fell more than 10 percent to below $300 after experiencing sharp fluctuations during the day. This development also caused panic among investors.
The Trump administration has targeted start-stop technology. This development has been met with backlash by many.
Musk’s harsh response to the tax cut initiative, which is of critical importance during the preparation process for Trump’s second presidential term, has led to speculation that the relationship between the two figures has completely broken down.
