Tesla shares plummeted 14% on Thursday, wiping out $150 billion in market value, as tensions between CEO Elon Musk and US President Donald Trump escalated into a bitter feud. The dispute has raised concerns about the regulatory environment for the electric car company, which is seeking to expand its self-driving and robotics technologies.
Musk’s criticism of a Trump-backed spending bill sparked the breach with the White House, with Trump accusing Musk of being unhappy about the elimination of a tax credit for electric vehicles. The two have also clashed over Trump’s decision to withdraw his nomination of Jared Isaacman, a Musk ally, to lead NASA.
Analysts are warning that the feud could spell trouble for Tesla investors, who had initially seen potential benefits from Musk’s alliance with Trump last year. However, investor sentiment soured this year as Musk faced backlash and hurt sales, especially in Europe.
The dispute has led to concerns about Musk’s focus on the company, with some investors calling for him to step back from his role leading Tesla. Despite being formally removed from his government position last month, Musk is still facing scrutiny over his leadership of the firm.
Tesla shares are currently down 25% since the start of the year but remain up 60% over the past 12 months. The company’s stock price has fallen to its lowest level since May, erasing gains made on hopes that Musk would refocus attention on the company.
Source: https://www.bbc.com/news/articles/cy902rv7q8do