Tesla stock is in freefall amid the fallout between the company CEO Elon Musk and US President Donald Trump, with the White House floating cutting Government contracts to Musk's companies.
Shares of Tesla plummeted 14 per cent today as the duo fought on social media over the Republican spending bill making its way through US Congress.
On Truth Social, the President stated: "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy electric cars that nobody else wanted (that he knew for months I was going to do!), and he just went crazy."
This latest fall in shares comes after the EV maker saw a 22 per cent rally last month despite weak sales numbers, which coincided with Musk leaving the Department of Government Efficiency (DOGE).
Trump and Musk are falling out, impacting Tesla shares
GETTY / GOOGLE
This week, shares in Tesla are down 17 per cent as Musk has continued his criticism of the White House's Budget bill.
For the year, shares are down more than 25 per cent and far below the $488.54 reached on December 18, following Trump's election win.
Since Musk's DOGE departure, the Tesla boss has ramped up criticism of the Trump administration's signature tax-cut bill.
It is understood Musk attempting to convince the White House to overhaul parts of the bill, specifically aspects which would slash electric vehicle tax credits.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Some analysts have blamed Elon Musk's political involvement for slumping Tesla sales in recent months REUTERS/GETTYAs well as this, the "Big, Beautiful Bill" is set to impose a new annual $250 fee on electric vehicle drivers if it passed through Congress.
Amid falling sales in Europe, Tesla has taken a reputational hit due to Musk's relationship move into politics and support for conservative policies.
Furthermore, Tesla is facing calls to launch a long-delayed, driverless ride-hailing service sometime this month in Austin, Texas.
Rival electric car manufacturers, including China's BDY, have also placed more pressure on Musk as stock continues to slide.
LATEST DEVELOPMENTS:
The stock market has been in turmoil since Trump returned to the White House on January 20ReutersOn X, Musk stated: "Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate."
He also described the President's tax bill as a "disgusting abomination" and claimed the White House resident was "in the Epstein Files" in reference to Jeffrey Epstein.
In response to the Tesla CEO, Trump suggested Musk could lose access to funding from the US federal Government.
Trump claimed the "easiest way to save money" in his signature tax bill is to "terminate Elon’s Governmental Subsidies and Contracts".
Most Read
