Tesla Market Cap Plunges $152 Billion Amid Musk-Trump Feud

Tesla's Market Cap Suffers $152 Billion Hit Amid Musk-Trump Spat

Shares of Tesla plummeted by 14% on Thursday, wiping out $152 billion in market capitalization, following a public disagreement between CEO Elon Musk and President Donald Trump. The drop pushed the EV maker's valuation below the $1 trillion mark.

The Source of the Conflict

The dispute stems from President Trump's threat to pull government contracts from Elon Musk's companies. This action came after Musk criticized the exclusion of EV credits in a recent spending bill.

Musk's Response

Musk responded to Trump's remarks via social media, stating, "Without me, Trump would have lost the election..." He has also been highly critical of the spending bill, calling it a "disgusting abomination."

Broader Challenges for Tesla

Beyond the political fallout, Tesla faces other challenges, including weak sales numbers in key European markets and declining brand reputation. The company is also under pressure to launch its long-delayed driverless ride-hailing service in Austin, Texas.

The Isaacman Factor

Walter Isaacson, author of a Musk biography, noted that Musk was also upset about actions taken against Jared Isaacman's nomination to head NASA. "That, to Musk, was just infuriating because they were doing, they were going after Jared Isaacman ... to get at Musk," Isaacson said.