Daijiworld Media Network – Mumbai
Mumbai, June 6: Tesla Inc. faced its worst single-day loss in market history as its shares plunged 14%, wiping out a staggering $153 billion in market value on Thursday. The dramatic sell-off followed an unexpected public spat between Tesla CEO Elon Musk and former US President Donald Trump, raising fresh concerns over Tesla’s political vulnerabilities and future government support.
The public fallout, which began over disagreements on Trump’s proposed tax legislation, escalated swiftly, with Trump threatening to revoke federal contracts and subsidies extended to Tesla and SpaceX, Musk’s aerospace firm. The episode marks a sharp reversal from earlier months when Musk enjoyed proximity to Trump’s political circle.
The market reacted swiftly and harshly. According to S3 Partners, short sellers booked gains of $4 billion, while investors were left scrambling amid uncertainty.
Analysts agree on one thing — Musk’s personality is inextricably tied to Tesla’s stock value, and political controversies continue to shake investor confidence.
Wayne Kaufman, Chief Market Analyst, Phoenix Financial Services, didn’t mince words:
“This is idiotic. Musk is Tesla. When he’s seen as a visionary, the stock flies. When he’s the problem, it tanks. This stock has never traded on fundamentals.”
Market experts fear that the Musk-Trump standoff could have broader ramifications. With both individuals known for their dominance and unpredictability, the clash could escalate further — a scenario analysts call a “gamble” for shareholders.
Adam Sarhan, CEO, 50 Park Investments:
“If this keeps escalating, it could directly impact Tesla’s earnings. It’s pure speculation right now. The stock isn’t cheap, and the risks are now political too.”
The feud has also led some of Tesla’s most vocal supporters to distance themselves.
Ross Gerber, CEO of Gerber Kawasaki Wealth, said on Bloomberg TV:
“This is a disaster. I sold Tesla stock today. The board won’t act, and shareholders are on their own. It’s erratic leadership that’s turning allies into enemies.”
Beyond the stock market, some experts warn of broader national implications.
Tom Orlik, Chief Economist, Bloomberg Economics:
“Targeting Musk’s companies could weaken America’s edge in critical tech sectors — from SpaceX to AI. That’s a high price for a political spat.”
The Tesla dream premium, long buoyed by Musk’s futuristic vision — from robotaxis to full autonomy — is now under threat. Investors are no longer just worried about car sales or competition from Chinese EVs, but about whether Tesla’s political entanglements might undo its gains.
Dave Mazza, CEO, Roundhill Financial:
“This adds complexity that Tesla really didn’t need. If Musk himself becomes a political target, the company’s growth narrative will take a hit.”