Tesla's shares dropped by 14.2% on Thursday, wiping $8.73bn off Elon Musk's net worth, due to an escalating public feud between Musk and Donald Trump. The former allies traded threats and insults on social media, with Trump threatening to cut government subsidies and Musk threatening to decommission SpaceX spacecraft and calling for Trump's impeachment.
Tesla share plunge amid Trump feud wipes $8.73bn off Elon Musk’s net worth
Elon MuskDonald TrumpTeslaTechnologyUnited States
AI Summary
TL;DR: Key points with love ❤️
Tesla's shares dropped by 14.2% on Thursday, wiping $8.73bn off Elon Musk's net worth, due to an escalating public feud between Musk and Donald Trump. The former allies traded threats and insults on social media, with Trump threatening to cut government subsidies and Musk threatening to decommission SpaceX spacecraft and calling for Trump's impeachment.
Trending- 1 Elon Musk had donated $275m to Trump’s 2024 presidential campaign and served as leader of 'Doge'.
- 2 Musk opposed the administration’s new tax bill.
- 3 Musk reportedly felt 'iced out' of the Trump administration.
- 4 The feud erupted publicly with Trump and Musk trading threats and insults on social media (Thursday).
- 5 Tesla’s shares dropped by 14.2% (Thursday).
- 6 Tesla is seeking to build a self-driving robotaxi, set to debut in Austin (next week).
- Tesla's share price dropped by 14.2%, decreasing the company's value to roughly $900bn.
- $8.73bn was knocked off Elon Musk’s total net worth.
- Increased investor scrutiny on how the clash could affect Musk’s business empire.
- Potential for canceled government deals or increased regulatory oversight for Musk's companies.
- Stock traders who shorted Tesla shares made billions.
- Tesla has struggled throughout the year amid declining sales and buyers rejecting the automaker due to Musk’s association with far-right politics.
What: Tesla's shares dropped by around 14.2%, leading to a $8.73bn decrease in Elon Musk's net worth, as a result of an escalating public feud between Musk and Donald Trump.
When: Thursday (market close, share drop, social media exchanges), next week (robotaxi debut).
Where: United States (context of US president, government subsidies), Austin (robotaxi debut).
Why: The feud erupted due to Musk's opposition to the administration's new tax bill, his feeling 'iced out' of the Trump administration, and a public exchange of threats and insults on social media platforms. Trump threatened to cut government subsidies and contracts, while Musk threatened to decommission SpaceX spacecraft and called for Trump's impeachment.
How: Musk and Trump traded barbs through posts on their respective social media platforms (Truth Social and X). Stock traders who had shorted Tesla shares made billions amid the spat.