Tesla shares tumbled by over 14 per cent on Thursday as the public feud between the company’s chief executive officer (CEO), Elon Musk, and President Donald Trump rattled investors.
The feud between the duo resulted in a $150 billion loss in the automaker’s market capitalisation.
Musk, who previously led the department of government efficiency (DOGE), described a Republican-backed tax bill as a “disgusting abomination” and claimed that Trump’s earlier presidential victory was partly due to his support.
Shortly after, he announced his resignation from the department.
In response, Trump threatened to revoke federal subsidies and contracts linked to Musk’s companies, including Tesla and SpaceX.
Following the exchange, Tesla shares dropped to $284.7 at market close, pushing the company’s valuation below $900 billion.
The broader Nasdaq Index also slipped by 0.8 per cent.
The tension between the duo sparked investor concern over Tesla’s future in the US, especially its planned launch of autonomous robotaxi services. These services are expected to roll out in Austin, Texas, later this year and expand to more cities by 2026.
Meanwhile, reports show Tesla’s vehicle sales in Europe are also slowing.
The company is also facing renewed scrutiny over its autopilot system after the resurfacing of a fatal 2023 crash allegedly linked to the software.
The latest development has also reduced Musk’s net worth by nearly $27 billion, although he remains the world’s richest person.
Tesla has not issued an official statement on the matter at the time of this report