The Tesla stock price plummeted by 14 percent on Thursday evening. The price drop corresponds to over 100 billion dollars in market value. Investors reacted to the open feud between US President Donald Trump and Tesla CEO Elon Musk.
The declining stock market listing is another setback for the electric car manufacturer. Tesla sold half as many electric cars in Europe in April compared to a year earlier. Analysts attribute this decline to the previously close collaboration between Trump and Musk.
The feud between Trump and Musk arose after the latter criticized an economic plan by Trump. According to Musk, the work of the American Department of Government Efficiency (DOGE) is being undone. Through DOGE, Musk has made significant cuts in the American civil service in recent months to save costs.
Musk has described the bill big beautiful bill as “an abomination”. Trump announced on Thursday that he was very disappointed in the tech billionaire, who then responded that the president was “ungrateful” for the help provided. Musk was previously considered a confidant of Trump. The Tesla CEO stopped working at DOGE about a week ago.
The two continue to trade barbs on Thursday evening. For example, Musk states that Trump would have lost the election without him. The president then threatened to stop government subsidies and contracts from Musk. That would “save billions”. That could have significant consequences for companies such as Tesla and Musk’s space company SpaceX, which have benefited from it.