Tesla Shares Plunge: Shares of Tesla Inc. took a steep dive on Thursday, sliding more than 14%, as rising tensions between CEO Elon Musk and former President Donald Trump ignited investor anxiety about the company’s future. The selloff wiped out nearly $150 billion from Tesla’s market value, undoing some of the recent gains spurred by excitement over its upcoming robotaxi initiative.
The rift between the two powerful figures escalated after Musk publicly claimed that Trump wouldn’t have been elected without his support. Trump fired back on his social platform, Truth Social, threatening to pull federal support from Musk’s companies.
The harsh rhetoric sent shockwaves through the market, especially as Tesla was gaining momentum thanks to Musk’s announcement that the company would begin testing autonomous “robotaxis” in Austin, Texas this month. The futuristic driverless taxi service is seen as a major part of Tesla’s growth strategy. But with Trump hinting at potential regulatory and financial roadblocks, some investors fear the plan could face serious delays.
“There is a fear that Trump is not going to play Mr. Nice Guy when it comes to autonomous,” said Dan Ives, a tech analyst at Wedbush Securities. “The goal is to roll robotaxis out in 20 to 25 cities by next year. But if the regulatory climate tightens under Trump, that timeline could slip.”
The fallout may extend beyond Tesla. SpaceX, Musk’s privately-held space company, is also on the radar. Heavily reliant on government contracts, SpaceX plays a crucial role in NASA missions—including its ambitious project to land astronauts on the moon. If Trump’s threats materialize, the company could face funding cuts that ripple through the space industry.
Even Starlink, the satellite internet subsidiary of SpaceX, could be affected. Musk’s once-friendly relationship with Trump appears to have helped Starlink secure international deals, including recent approvals in Saudi Arabia, Pakistan, India, and Bangladesh. Musk traveled with Trump to the Middle East last month, where he revealed Starlink’s expansion into aviation and maritime services. Whether those deals will hold firm as tensions mount is now uncertain.
Despite the chaos, SpaceX continues to thrive financially. A recent private funding round followed by a secondary share sale valued the company at a staggering $350 billion—up from $210 billion just a year ago. The skyrocketing valuation underscores investor belief in the company’s long-term vision, though political risk could now loom larger than expected.
Tesla, too, has seen wild swings in investor sentiment. Following Trump’s 2016 election, Tesla stock surged, hitting a record high in December of that year. But the honeymoon didn’t last long. Musk’s stint on a federal cost-cutting committee and Tesla’s growing dependence on federal support drew criticism, and the stock eventually cooled off.
More recently, however, Tesla had enjoyed renewed investor enthusiasm. Musk’s recommitment to the company, paired with announcements about its self-driving ambitions, had driven shares sharply higher over the past two months. But Thursday’s downturn suggests that Wall Street remains highly sensitive to political developments—especially when they threaten Tesla’s regulatory path and government-backed ventures.
As the drama between two of the world’s most influential men unfolds, investors are left to weigh whether Tesla and Musk can weather a potentially stormy political landscape. What’s clear is that the collision of politics, technology, and business is once again shaking up the markets—and Tesla is right at the center.
