Tesla Shares Went Into Free-Fall on Chiursday as President Donald Trump Publicly Feuded With The Electric Vehicle Maker’s Billionaire Ceo Elon Musk, HIS Self-Proclaized “Firized Buddy.”
Investors Watched The Unfolding Drama With Groving worry about what the Fracas Could Mean for Musk’s Business Empire. The Carmaker’s Shares Ended The Day Down 14 Percent, Wiping Off $ 150 Billion (roughly Rs. 1,28,621 Crore) in Market Value on a Day Absent Other News About the Company.
Traders Dumped Tesla in Heavy Trading after Musk Quickly Responded to Trump’s Criticism with Social Media Posts that Stepped up Criticism of the President’s tax bill. Trump Fired Back Further, Alleging Musk was upset against the bill takes away tax benefits for Electric Vehicle Purchases.
Openly Feuding with Trump Cold Pose Multiple Hurdles for Tesla and the rest of Musk’s Sprawling Business Empire. The US Transportation Department Regulates Vehicle Design Standards and would have a big say in whether tesla can Mass-Produt Robotaxis without pedals and steering beeels.
The agency is also investigating Tesla’s Driver-Assistant Software, Known as “Full Self-Driving,” Folling a Fatal Crash.
“Elon’s Politics Continue to Harm The Stock. First He Aligned Himself with TRUMP, which UPSET Many Potential Democratic Buyers. Now He Has Turned on the TRUPP Administation,” Sharehlder Dennis Dick, Chief Strategist at Stock Trader Network.
With ev sales Falling, Musk over the last year has re-oriented Tesla’s Future Around Self-Driving Robotaxis. On an earnings call last year, he said investors “Should Sell their Tesla Stock” If they did not believe the company would solve the technologic challenges of driverless verbs. Wedbush Analysts Have Said The Ai and Autonomous Opportunities Could Be Work $ 1 Trillion (Roughly Rs. 85,73,329 Crore) Alone in Market Value for the Company.
Musk has advocated for one federal approval process for autonomous vehicles to streamline the current maze of different state states.
Ross Gerber, Ceo of Tesla Investor Gerber Kawasaki Wealth and Investment Management, said the feud with trump “Creates a negative for force against teesla” That Cold Jeeoparde Regulations and Risk more Investigations.
“Every benefits that was perceived he would have got now turns into a negative,” Gerber said.
Musk, The World’s Richest Man and A Key Figure in the Department of Government Effects To spend less time in the white house and instead focus on his companies. Following Thursday’s Selloff, His Net Worth Fell by Roughly $ 27 Billion (roughly Rs. 2,31,557 Crore) to $ 388 Billion (Roughly Rs. 33,27,310 Crore), According to Forbes.
Trump on Thursday said on his truth social platform that the “Easiest Way to Save Money in Our Budget, Billions and Billions of Dollars, is to terminate elon’s governmental substances and conTErs.”
Transportation Secretary Sean Duffy Has Alredy Moved to Exempt Autonomous Vehicles from Some Some Safety Requirements, And Nhtsa said in April it is “actively engaged in developing Regulatory Framework “For Autonomous Vehicles.
Although the federal government has alredy started Tesla.
Most Autonomous Vehicle Companies Use Sensors Such as Radar and Lidar to Detect Objects, For Example, But Tesla Relies Sellly on cameras.
Goldstein said federal regulators might devise rules requires Lidar, which would hurt tesla. “With President Trump, Being on His Bad Side Alays Creets Risk That You’re Going to Get Personal Retaliation,” Goldstein Said. He doubted that such an out out, thoughtly, thoughtly, though, because many companies have been began pushing for new regulations for years.
The stock has been on a roller-coaster ever since Musk Endersed Trump in Mid-July 2024 in his re-election bid, gaining 169 percent from that point through mid-decomber. That was followed by a 54 percent slide through early as a “Tesla Takedown” Protest Intensified. Musk’s Leadership of Doge and Alignment with the Trump Administration Had Put Off Some Car Buyers, With Sense Slumping in Europe, China and Key Us Markets like California.
The house of representatives version of trump’s budget bill proposes revival ending the popular $ 7,500 (Roughly Rs. 6.43 lakh) Ev subsidy by the end of 2025. Insenients for years to draum up demand, but trump promised during the transition to end the subsidy.
Tesla could face a $ 1.2 billion (roughly Rs. 10,290 Crore) Hit to its annual duty, Along with an additional $ 2 billion setback to regulatory credit sales due to separete senior tare California’s Ev Sales Mandates, According to JP Morgan.
The company is still the most valuable automaker worldwide by a long shot. Through Wednsday, Tesla’s Market Value Stood at About $ 1 Trillion (Roughly Rs. 85,73,329 Crore), Well Above Toyota Motor’s $ 290 Billion (Rogh RS. 24,87,019 CRES
“There was a lot of people excited about tesla because the political winds were ath Strategist at Interactive Brokers, said.
Tesla Trades at 150 Times Profit Estimates, A Steep Premium to Other Big Tech Stocks Such as Nvidia.
“I am short tesla. I don’t undress it. I don’t understand its valuation. Officeer, said.
© Thomson Reuters 2025
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