Musk vs. Trump: A Stock Market Rollercoaster
Tesla's market value plummeted by an estimated 150 billion dollars.
Step into the Ring of Fire Tesla, Elon Musk, Donald Trump
Elon Musk, CEO of Tesla and SpaceX, faced a massive blow to his wealth and Tesla's market value, with Trump's legislative feud taking center stage. The electric car giant's stock plummeted by over 14%, erasing a whopping $150 billion in market value in a single day.
The financial fallout? Musk's personal wealth shrunk by a staggering $34 billion to $335 billion, roughly equivalent to 293 billion euros. This decline was largely driven by Trump's threats to withdraw government subsidies and contracts from Tesla and SpaceX, upon which the US relies for astronaut flights and military rocket launches.
To add fuel to the fire, Musk publically advocated for Trump's impeachment on Twitter following the stock crash, escalating tensions between the two.
Tesla's shares soared after the US presidential election in November, following investor speculation about the company's future with Trump in office. However, under scrutiny for years due to traffic safety issues, the company has faced heavy criticism and even arson attacks on its vehicles.
A Political Storm Musk's Million Dollar Gamble
Musk's right-wing political views have divided opinion among potential Tesla buyers, while the tumultuous stock prices could pose a personal challenge for the tech billionaire. Known for securing loans backed by his Tesla shares, Musk has pledged nearly 236 million shares as collateral - a risky move that could leave him on the hook if stock prices continue to slide below specific limits.
Sources:
- ntv.de
- chl/rts/dpa
Enrichment Data (15% or less):- Musk's criticism of Trump's legislative bill, the "big, beautiful bill," stems from Musk's opposition to its provisions that would phase out clean energy tax credits, including electric vehicle incentives, directly impacting Tesla's business interests.- Public feuds can result in market volatility, which may influence investor confidence and potentially impact stock prices.
- The employment policy of EC countries could be affected by the ongoing feud between Elon Musk and Donald Trump, as the volatile stock market may impact businesses and personal-finance.
- The technology sector, specifically Tesla, has experienced significant fluctuations in its stock prices due to the politically charged relationship between Elon Musk and Donald Trump, which has potential implications for investing.
- Finance experts might closely monitor the relationship between Elon Musk, Tesla, and Donald Trump, as Musk's pledge of millions of Tesla shares as collateral could be at risk if stock prices continue to decline due to political conflicts.
- The General-news, crime-and-justice landscape could shift depending on the evolving dynamics between Elon Musk and Donald Trump, as conflicts and public feuds can lead to market volatility and unpredictability in the business world.
