Elon Musk’s Tesla Suffers $150 Billion Loss Amid Explosive Feud with Donald Trump

Tesla Inc. has taken a significant hit, losing over $150 billion in market value, after a public spat between CEO Elon Musk and former U.S. President Donald Trump rattled investor confidence.

The electric vehicle giant’s shares plunged by more than 14% on Thursday, closing at $284.70, bringing Tesla’s valuation below $900 billion. The decline also impacted the broader tech sector, with the Nasdaq Index dropping by 0.8%.

The tension erupted after Musk, former head of the Department of Government Efficiency (DOGE), publicly criticized a Republican-supported tax bill as a “disgusting abomination,” while also asserting that Trump’s 2016 election victory was partly due to his support. Musk later announced his resignation from the department.

In retaliation, Trump threatened to revoke federal subsidies and government contracts associated with Musk’s companies, including Tesla and SpaceX.

The fallout has raised concerns about Tesla’s future, especially its highly anticipated autonomous robotaxi launch set to begin in Austin, Texas, later this year, with plans to expand nationwide by 2026.

Compounding Tesla’s challenges, recent reports indicate slowing sales in Europe, while scrutiny intensifies around the company’s Autopilot system, following the resurfacing of a fatal 2023 crash allegedly linked to the software.

The share price slump also slashed Elon Musk’s net worth by nearly $27 billion, though he still holds the title of the world’s richest person.

Stay tuned for updates as this high-stakes tech-politics standoff unfolds.