Tesla Inc. shares reportedly tumbled by over 14 per cent on Thursday, as the public feud between Elon Musk, the company’s chief executive officer (CEO), and President Donald Trump rattled investors.
The development was said to have resulted in a $150 billion loss in the car maker’s market value.
Musk, who previously led the Department of Government Efficiency (DOGE), described a Republican-backed tax bill as a “disgusting abomination” and claimed that Trump’s earlier presidential victory was partly due to his support.
Shortly after, he announced his resignation from the department.
Read Also: Trump threatens to cut Musk’s government deals as feud explodes over tax-cut bill
In response, Trump threatened to revoke federal subsidies and contracts linked to Musk’s companies, including Tesla and SpaceX.
Following the exchange, Tesla shares dropped to $284.7 at market close, pushing the company’s valuation below $900 billion. The broader Nasdaq Index also slipped by 0.8 per cent.
The tension between the two men sparked investor concern over Tesla’s future in the US, especially its planned launch of autonomous robotaxi services, which are expected to roll out in Austin, Texas, later this year and expand to more cities by 2026.
Meanwhile, reports show Tesla’s vehicle sales in Europe are also slowing. The company is also facing renewed scrutiny over its autopilot system, after the resurfacing of a fatal 2023 crash allegedly linked to the software.
The latest development has also reduced Musk’s net worth by nearly $27 billion, although he remains the world’s richest person.
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