Tesla Shares Crash 14% After Musk-Trump Feud – $152 Billion Wiped Out

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Tesla Shares Crash 14% After Musk-Trump Feud – $152 Billion Wiped Out

Tesla stock


Tesla (TSLA) investors faced a brutal sell-off as shares plummeted 14% in a single day, erasing a staggering $152 billion from the company’s market value. The dramatic drop comes after a heated public clash between Elon Musk and former President Donald Trump , sparking fears over Tesla’s future growth and government support.  

What Sparked the Tesla Stock Crash? 

The sell-off was triggered by a Twitter feud between Musk and Trump, where the former president criticized electric vehicle (EV) subsidies and hinted at slashing federal tax credits for Tesla buyers. Trump also suggested reallocating government contracts away from Tesla, favoring legacy automakers instead.  

Musk fired back, calling the move "anti-innovation" and accusing Trump of "protecting gas guzzlers." The war of words spooked investors, who fear:  

- Loss of EV tax credits → Higher prices could hurt Tesla sales.  

- Reduced government contracts → Threat to Tesla’s revenue streams.  

- Political uncertainty → Musk’s clashes with Trump may lead to stricter regulations.  

Why This Is a Major Risk for Tesla

Tesla has relied heavily on government incentives to boost demand. If Trump’s proposed policies take effect, it could:  

✅ Slow down EV adoption – Fewer buyers without tax breaks.  

✅ Increase competition – Legacy automakers may gain an edge.  

✅ Pressure profit margins – Tesla may need to cut prices further.  

Market Reaction & Analyst Warnings 

- Morgan Stanley slashed Tesla’s price target, warning of "regulatory headwinds."

- Goldman Sachs downgraded TSLA, citing political risks.

- Retail investors panic-selling – Over $5 billion in options trades turned bearish.  

What’s Next for Tesla Stock?

If the Musk-Trump feud escalates, Tesla could face:  

🔻 More volatility – Political risks add uncertainty.  

🔻 Short-term pressure – Bears may push TSLA below $150.  

🔻 Long-term risks – Policy changes could slow Tesla’s dominance.  

Final Thoughts

Tesla’s stock crash shows how political drama can wreck even the strongest companies. With Trump threatening EV incentives and Musk fighting back, investors are bracing for more turbulence.  


Will Tesla recover? Or is this the start of a deeper downturn? Stay tuned for updates!  

Tesla stock


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