Tesla shares dropped after a public war of words between Elon Musk and Donald Trump, the then-U.S. President. The squabble undermined investor faith, with Tesla suffering heavily in terms of market capitalization. Tesla shares dropped by 14% during Thursday's trading.
Loss Estimated at $152 Billion
As the stock fell, Tesla's market value decreased by $152 billion (approximately ₹13 lakh crore). Overall market capitalization decreased below the $1 trillion mark and closed at $916 billion. This is the biggest single-day loss in Tesla's history.
Conflict Between Musk and Trump
Elon Musk, fresh from the retirement of handling the Department of Justice, vehemently blamed Trump. He claimed that Trump would not have succeeded in the 2024 elections unless he had his support. Musk further blamed Trump for having some sort of dealings with Jeffrey Epstein and demanded that Trump be impeached.
Trump's Response and Threats
Trump rebutted Musk vehemently. He lambasted Musk in public and threatened to take away government contracts awarded to Musk's companies. Trump tweeted that Musk was attempting to dominate the U.S. market by promoting electric cars and accused him of going too far.
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