Trump-Musk Conflict Intensifies… Tesla Stock Plunges 14% in a Day

JH Kim

Summary

It was reported that Tesla's stock price plunged by 14.26% due to the intensifying conflict between President Trump and CEO Musk.
It was stated that political confrontation and policy uncertainty heightened investor concerns about Tesla's business outlook.
Concerns have been raised that Musk's comments and Trump's response could negatively affect Tesla's federal contracts and tax benefits.

According to CNN News on the 5th (local time), Tesla (TSLA) shares on the New York Stock Exchange closed at $284.70, plunging 14.26% from the previous day.

It is analyzed that the public escalation of discord between President Donald Trump of the United States and Elon Musk, CEO of Tesla, has fueled investor concerns about Tesla's business outlook, which in turn led to the stock's sharp decline.

Recently, Musk openly opposed the 'Big, Beautiful Bill,' a core tax cut initiative of the Trump Administration, criticizing it as 'disgusting and repulsive.'

This bill passed the House of Representatives, but Musk insisted it should be voted down in the Senate, maintaining a firm stance of opposition.

In response, President Trump expressed discomfort regarding Musk's remarks while speaking with reporters during a meeting at the White House with Friedrich Merz, Chancellor of Germany. Trump said, "Elon Musk and I had a good relationship, but now I'm not so sure. I'm very disappointed. I was surprised."

Musk also responded immediately. Through his X (formerly Twitter), he hit back, "If it weren't for me, Trump would have lost the election," further widening the rift.

As the political and economic conflict between the two intensified, the political risk and policy uncertainty regarding Tesla are seen to have negatively affected its stock price.

Some observers raised concerns that Musk's political statements and Trump's response could impact Tesla's federal contracts and tax benefits.