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Tesla’s market value fell by one day on record on Thursday, the biggest day on record as an escalating feud between Donald Trump and Elon Musk caused a sharp sale of the automaker’s shares.
Shares in the Electric Vehicle Group have been closed more than 14%, eliminating $153 billion from its market capitalization after the US president signaled that it could terminate a US government contract with a mask company.
“The easiest way to save money on our budget, billions, billions of dollars is to end Elon’s government subsidies and contracts,” Trump wrote on his platform True Social.
Due to the decline on Thursday, Tesla’s stock price fell 25% since the beginning of the year.
The spitting between the two most powerful men in the world included repeated barbs from musk on his platform X, and a billionaire, how close ally since the election was “thin.”
Tesla’s sale reverberated through the US stock market, with the S&P 500 and Tech Heavy Nasdaq Composite reducing sessions by 0.5% and 0.8% respectively. At about noon, when Trump and Musk began to exchange humiliation, both indicators began to fade.
Mike Zigmont, co-head of trading and research at Visdom Investment Group, said the pair’s “peturant dramas have shaken the stock market.” “The bond market didn’t bother me.
Tesla investors have been on a roller coaster for several months. Stocks were heavily repeated in the final quarter of last year after President Trump won a second term as president, but fell between mid-December and early March amid wider market sales driven by Trump’s trade war.
Rival stock AST Spacemobile won 7.5% while communications group Echostar rose 17.4% when Musk’s space exploration group SpaceX and its satellite broadband network subsidiary Starlink fell on Thursday.
Musk’s relationship with Trump is broken as his public intervention in European politics, including support for far-right parties, contributed to a decline in car sales across Europe.
In March, a strategist at JP Morgan wrote a note to the client saying that he “has struggled to think of something similar to the history of the automotive industry, where brands lost value so quickly.”
As head of the so-called government efficiency department, he also reduced musk to federal spending, which also sparked a backlash. The Tesla boss retreated from his government role at the end of May, denounced “blowback” against his business.
Some investors said the market should have anticipated a mask feud with Trump despite previous bonomy. Famous shortseller Jim Chanos said in X “Most, Predictable, Divided.
