Tesla shares plunged 14% amid a public spat between company founder Elon Musk and US President Donald Trump, wiping $152 billion off the company's market value.
Points of attention
- Tesla shares fall 14% as Elon Musk and Donald Trump clash publicly, resulting in $152 billion loss in market value.
- Elon Musk criticizes Trump's bill, warning of unsustainable debt and increased budget deficit for Americans.
- Trump signs bill extending tax cuts while cutting funding for social programs, leading to sharp criticism from Musk.
Musk is losing money due to a quarrel with Trump
This was estimated to be the biggest blow to the company's market capitalization in history, with its value falling below $1 trillion for the first time, to $916 billion.
This came amid threats from Trump to cancel government contracts with Tesla.
Elon was "burning out," I asked him to leave, I took away his electric car mandate that forced everyone to buy electric cars that no one needed anymore (he had known for months that I was going to do this!), and he just went crazy.
Donald Trump
President of the United States
Speaking in the Oval Office, the American leader said that Musk was upset about the tax and spending bill because it did not include electric vehicle loans. The US President announced that he had a great relationship with the billionaire.
"I don't know if they'll continue to be like that," Trump added.
Tesla shares have fallen nearly 18% this week as Musk sharply criticized the bill Trump signed into law. They have fallen nearly 30% this year.
The bill, signed by Trump, would extend tax cuts while increasing defense and security spending. To offset the costs, the bill would cut funding for social programs.
Elon Musk has sharply criticized the bill signed by Trump, declaring that it will significantly increase the budget deficit and burden Americans with unsustainable debt. The billionaire called the document a "disgusting abomination" and shamed the members of Congress who voted for it.
Trump responded by saying he was disappointed with Musk's position. According to the American leader, the entrepreneur "knew the inside scoop" on the bill better than anyone else.
The White House tried to reconcile the former allies and announced that a phone conversation between Musk and Trump would take place today. However, the US president refused to hold talks.
Trump said he was not interested in talking to Elon. In an interview with ABC News, he said the billionaire was a man who had lost his mind.
The New York Post tabloid responded to Trump and Musk's feud with a cover story about the end of the bromance, with the headline "I HATE MY X!"
