Donald Trump Slams Elon as Tesla Shares Crash
Following Elon Musk’s announcement on Monday that he was starting a new American political party, which infuriated President Donald Trump, Tesla’s stock fell 6.79%. In premarket trade, Tesla (TSLA) shares also had fallen as much as 7.6%. The stock saw its largest one-day fall since June 5, when Musk and Trump exchanged sarcastic remarks on social media, although partially reversing some of its earlier losses.
Musk’s declaration on Saturday that he is starting a political party to compete with the major Republican and Democratic parties was brought up by Trump. He argued Musk‘s declaration would cause confusion and was absurd.
I’m saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,
Trump
Tesla Investors Fear Musk’s Political Distraction Could Derail EV Success
Tesla investors were worried about two things, according to Neil Wilson, a strategist at the UK trading platform Saxo Markets, who made the statement on Monday. First, more resentment between Musk and Trump would result in greater reductions in government EV subsidies in the United States. The second was that Musk seemed distracted.
Investors had cheered Musk stepping back from frontline politics but are now worried he’s going to (be) sucked back in and take his eye off Tesla,
Wilson
Tesla Sales Slide as Musk’s Political Ambitions Spark Investor Anxiety
In the past few months, Tesla’s fortunes have changed as it has struggled with growing competition from other EV manufacturers and the consequences of Musk’s entry into US politics. The business revealed last week that its second-quarter revenues had dropped to a record 13.5% lower than during the same time in 2024. Although the decline was little (about 1%), it represents a dramatic change for a carmaker that has generally enjoyed strong sales growth.
In the meantime, protests outside of Tesla’s showrooms around the world have been triggered by Musk’s recent engagement at the wheel of the US government, including leading the Department of Government Efficiency and leading large layoffs of federal employees. Investors hoped that Musk would have more time to work on his businesses, which include SpaceX and X after he revealed in May that he would be leaving his government job. However, the billionaire has returned to politics as a result of his conflict with Trump and his anticipated efforts to win over supporters of his new party. This triggered a decline in the share price.
For more up-to-date crypto news, you can follow Crypto Data Space.
