Tesla’s shares decreased more than 7% on Tuesday, erasing billions of market value of electric vehicle manufacturer as the rupture between CEO Elon Musk and President Donald Trump reigned.
Tesla shares dropped from $ 22.78, or 7.17%, to $ 294.88 per action from 9:40 am in the eastern time, a sharp fall in the previous closure of $ 317.66.
The Nasdaq actions slide followed a new round of Trump’s attack on its true social platform, in which it threatened with AX federal subsidies for Musk companies, including Tesla and Spacex.
“Elon can get more subsidies than any human being in history, by far and without subsidies, Elon would probably have to close the store and return home to South -Africa,” Trump wrote early on Tuesday.
“There are no further launches of rocket, satellites or production of electric vehicles, and our country would save a fortune. Maybe we should make DOGE take a good, hard, look at it? Great money to save !!!”
The hut took place a few hours after Musk exploded the advance of the Senate of the Trump Tax and Expense Invoice, which includes provisions to reduce electric vehicle tax credits before planned.
The movement could cost Tesla about $ 1.2 billion for annual benefit. In a post on x, Musk struck the bill as “completely foolish and destructive [with] Sheets in the past industries while seriously impairing the future industries. “”
Musk, formerly headed by Trump’s federal agency of Trump, DOGE, the Government Efficiency Department, has repeatedly criticized the legislation, arguing that it violates the campaign promises to reduce government spending.
“Anyone who has campaigned for the promise of reducing spending, but continues to vote on the greatest increase in the roof of debts in history, will see his face in this poster in the elementary school next year,” Musk wrote Monday night, attaching an image generated by Pinocchio Ai labeled “liar”.
Trump’s response came shortly after.
“Elon Musk knew it, long before I was so strongly supported by the President, who was strongly against the EV’s mandate,” said the President, saying a deeper political division between the two billionaires.
The word war marks a return to the tensions that were seen in early June, when a social media social media Slugfest erased more than $ 150 billion from Tesla’s assessment in one day, a clear signal that investors are restless on political risks related to Musk clashes.
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Wedbush’s analyst Dan Ives warned on Tuesday a note that the ongoing drama brought thin with shareholders.
“The Jabs Between Musk and Trump will continue as the budget goes through Congress, but Tesla’s investors want Musk to focus on the driving of Tesla and stop this political angle … which has become a life on a roller coaster since the November election,” he wrote.
“At the end of the day, being on the bad side of Trump won’t go well … and Musk knows and Tesla’s investors want this to end,” he added.
Adding more pressure to actions, the new data showed that Tesla sales in Sweden and Denmark fell during the sixth consecutive month in June.
The company will report on Wednesday the world vehicle deliveries, with analysts who provide for a decrease of 11% year -on -year.
The publication has sought comments from Musk, Tesla and the White House.
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