Political Drama Costs Tesla Over $100 Billion in Market Value

The tumultuous stock performance of Tesla (TSLA) has descended sharply, dropping over 50 points amid a public feud between CEO Elon Musk and former President Donald Trump.

This feud underscores the significant influence of external factors, particularly politics, on Tesla’s market perception, despite the company’s relatively stable operational fundamentals.

Musk’s controversial support for Trump juxtaposes the former president’s known opposition to electric vehicles (EVs), raising questions about Musk’s business acumen.

Tesla’s Stock Plummets Amid Musk-Trump Feud

Despite claiming to have saved the government billions, recent analyses suggest Musk may actually have contributed to a growing deficit, raising concerns about his decision-making capabilities.

The fragile nature of Tesla’s stock became evident as more than $100 billion was wiped off its market capitalization since the onset of this feud. Investors appear increasingly wary that the company’s fortunes could be influenced by Musk’s erratic behavior, particularly as he has vacillated between supporting and criticizing Trump, who himself has a history of favoring fossil fuel interests over EV initiatives.

The turmoil within the Tesla realm was exacerbated by Musk’s unpredictable tweets, with him pointing fingers at Trump over budgetary issues, claiming they would worsen the national deficit.

Trump’s rebuttal suggested Musk’s earlier claims of providing electoral support went unrecognized, further fanning the flames of their rivalry. Analysts are observing closely, as this feud could detrimentally affect Tesla’s brand image as well as its sales.

While some investors may view this spat as a clash of two powerful figures, it starkly highlights Tesla’s vulnerability to its CEO’s impulsive actions. As market expectations shift rapidly, the focus now lies on whether Musk can rein in his behavior and steer Tesla back toward a growth trajectory without the shadow of political controversies overshadowing its operations.