Tesla's Stock Plunge: Musk vs Trump Feud Takes a Toll
Tesla's market value has decreased by 150 billion dollars.
Elon Musk's public spat with President Donald Trump sent Tesla's stock spiraling, losing a whopping $150 billion in market value overnight. The electric car leader's shares plummeted by over 14 percent in US trading.
Financial news service Bloomberg reported a staggering $34 billion drop in Musk's personal wealth, leaving him with an estimated $335 billion (around $293 billion euros).
The disagreement escalated after Trump threatened to pull government subsidies and contracts from Tesla. SpaceX, another of Musk's ventures, is crucial for the US with its astronaut flights and military rocket launches. In response, Musk advocated for Trump's impeachment on Twitter.
Post-US election, Tesla's stock saw an upward trend due to investor bets on Musk's ties to Trump. Despite investigations by traffic safety authorities for years, Tesla had managed to stay afloat.
A Personal Impact for Musk?
Musk, known for securing loans with Tesla shares, might face a personal hit. If the share price falters, he could be required to provide additional collateral. According to Tesla's updated 2024 annual report, Musk pledged nearly 236 million of his Tesla shares as collateral for loans.
Musk's political views, often right-wing, have repelled some potential Tesla buyers. Protests and even arson attacks on Tesla vehicles have ensued.
As the dispute takes centre stage, its implications for Tesla's stock price and Elon Musk's wealth remain uncertain. Future developments, such as actual contract cancellations or policy changes, could significantly impact this situation.
Sources: ntv.de, chl/rts/dpa
- Tesla Motors
- Elon Musk
- Donald Trump
- Stock Prices
The disagreement between Elon Musk and Donald Trump, the US President, has potential implications for the employment policy of Tesla, given that Musk's political views have repelled some potential buyers. Additionally, the ongoing feud may impact the finance of Tesla, as Musk pledged a substantial number of his Tesla shares as collateral for loans.
