Tesla Inc. (TSLA) is facing one of its most turbulent weeks in recent memory, with its stock plummeting over 11% in a single trading day. The sharp decline follows a dramatic public fallout between Tesla CEO Elon Musk and President Donald Trump. Once seen as allies, the duo now find themselves at odds—driven by political clashes, economic decisions, and personal tensions.
At the center of the dispute is a sweeping Republican spending plan dubbed the “One Big Beautiful Bill,” which eliminates key incentives for electric vehicles. Elon Musk slammed the bill as a “disgusting abomination,” citing the removal of EV tax credits as a direct attack on innovation and sustainability.
Musk’s outcry triggered a sharp response from President Trump, who publicly distanced himself from the billionaire entrepreneur. Trump remarked that while he had “great respect for Elon,” their relationship had changed. The fallout is now rippling through both Washington and Wall Street.
Tesla’s stock has taken a serious hit, dropping from over $329 to just above $300. The dip reflects a growing sense of investor unease—not just about the political rift, but also Tesla’s recent performance issues in global markets. In key regions like Germany, EV sales have slipped significantly, and consumer trust appears shaken.
Investors are also wary of broader market reactions, especially given the rising influence of government policies on emerging tech sectors like clean energy and automation.
Despite the political storm, Tesla is moving full speed ahead with the official launch of its long-awaited Robotaxi service. Slated to debut on June 12, 2025, this groundbreaking self-driving taxi system could redefine the future of urban mobility.
The success or failure of Robotaxi may decide whether TSLA rebounds or continues to decline. Many believe that innovation, not politics, should remain the focus—and this could be Musk’s chance to redirect the narrative.
This isn’t just a feud between two powerful men. It’s a defining moment for the future of American innovation, energy independence, and political influence on business. Will Tesla survive the political heat and come out stronger? Or is this the beginning of a longer-term shakeup?
Only time will tell, but one thing is clear: the intersection of business, politics, and technology has never been more intense—or more important.
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