Trump-Musk row slams Tesla shares, $150bn in market value wiped out
Tesla shares went into free-fall on Thursday as US President Donald Trump publicly feuded with the electric vehicle maker's billionaire CEO Elon Musk, his self-proclaimed 'First Buddy'.
Investors watched the unfolding drama with growing worries about what the fracas could mean for Musk's business empire. The carmaker's shares ended the day down 14%, wiping off $150bn (R2.6-trillion) in market value on a day absent of other news about the company.
Traders dumped Tesla in heavy trading after Musk quickly responded to Trump's criticism with social media posts that stepped up criticism of the president's tax bill. Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases.
Openly feuding with Trump could pose many hurdles for Tesla and the rest of Musk's sprawling business empire. The US transportation department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels.
The agency is also investigating Tesla's driver-assistance software, known as 'Full Self-Driving', after a fatal crash.
'Elon's politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,' said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
5 hours ago
- eNCA
Musk deletes post claiming Trump 'in the Epstein files'
WASHINGTON - Tech billionaire Elon Musk has deleted an explosive allegation linking Donald Trump with disgraced financier Jeffrey Epstein that he posted on social media during a vicious public fallout with the US president this week. Musk -- who just exited his role as a top White House advisor -- alleged on Thursday that the Republican leader is featured in unreleased government files on former associates of Epstein, who died by suicide in 2019 while he faced sex trafficking charges. The Trump administration has acknowledged it is reviewing tens of thousands of documents, videos and investigative material that his "MAGA" movement says will unmask public figures complicit in Epstein's crimes. Trump was named in a trove of deposition and statements linked to Epstein that were unsealed by a New York judge in early 2024. The president has not been accused of any wrongdoing in the case. "Time to drop the really big bomb: (Trump) is in the Epstein files," Musk posted on his social media platform, X as his growing feud with the president boiled over into a spectacularly public row. "That is the real reason they have not been made public." Musk did not reveal which files he was talking about and offered no evidence for his claim. He initially doubled down on the claim, writing in a follow-up message: "Mark this post for the future. The truth will come out." However, he appeared to have deleted both tweets by Saturday morning. Supporters on the conspiratorial end of Trump's "Make America Great Again" base allege that Epstein's associates had their roles in his crimes covered up by government officials and others. They point the finger at Democrats and Hollywood celebrities, although not at Trump himself. No official source has ever confirmed that the president appears in any of the as yet unreleased material. Trump knew and socialized with Epstein but has denied spending time on Little Saint James, the private redoubt in the US Virgin Islands where prosecutors alleged Epstein trafficked underage girls for sex. "Terrific guy," Trump, who was Epstein's neighbor in both Florida and New York, said in an early 2000s profile of the financier. "He's a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side." Just last week, Trump gave Musk a glowing send-off as he left his cost-cutting role at the so-called Department of Government Efficiency (DOGE). But their relationship imploded within days as Musk described as an "abomination" a spending bill that, if passed by Congress, could define Trump's second term in office. Trump hit back in an Oval Office diatribe and from there the row detonated, leaving Washington and riveted social media users alike stunned by the blistering break-up between the world's richest person and the world's most powerful. With real political and economic risks to their row, both then appeared to inch back from the brink on Friday, with Trump telling reporters "I just wish him well," and Musk responding on X: "Likewise." But the White House denied reports they would talk.
Eyewitness News
6 hours ago
- Eyewitness News
Musk deletes post claiming Trump 'in the Epstein files'
WASHINGTON - Tech billionaire Elon Musk has deleted an explosive allegation linking Donald Trump with disgraced financier Jeffrey Epstein that he posted on social media during a vicious public fallout with the US president this week. Musk - who exited his role as a top White House advisor just last week - alleged on Thursday that the Republican leader is featured in secret government files on former associates of Epstein, who died by suicide in 2019 while he faced sex trafficking charges. The Trump administration has acknowledged it is reviewing tens of thousands of documents, videos and investigative material that his "MAGA" movement says will unmask public figures complicit in Epstein's crimes. "Time to drop the really big bomb: (Trump) is in the Epstein files," Musk posted on his social media platform, X as his growing feud with the president boiled over into a spectacularly public row on Thursday. "That is the real reason they have not been made public." Musk did not reveal which files he was talking about and offered no evidence for his claim. He initially doubled down on the claim, writing in a follow-up message: "Mark this post for the future. The truth will come out." However, he appeared to have deleted both tweets by Saturday morning. Supporters on the conspiratorial end of Trump's "Make America Great Again" base allege that Epstein's associates had their roles in his crimes covered up by government officials and others. They point the finger at Democrats and Hollywood celebrities, although not at Trump himself. No official source has ever confirmed that the president appears in any of the material. Trump knew and socialized with Epstein but has denied spending time on Little Saint James, the private redoubt in the US Virgin Islands where prosecutors alleged Epstein trafficked underage girls for sex. "Terrific guy," Trump, who was Epstein's neighbor in both Florida and New York, said in an early 2000s profile of the financier. "He's a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side." Just last week Trump gave Musk a glowing send-off as he left his cost-cutting role at the so-called Department of Government Efficiency (DOGE). But their relationship imploded within days as Musk described as an "abomination" a spending bill that, if passed by Congress, could define Trump's second term in office. Trump hit back in an Oval Office diatribe and from there the row detonated, leaving Washington and riveted social media users alike stunned by the blistering break-up between the world's richest person and the world's most powerful. With real political and economic risks to their row, both then appeared to inch back from the brink on Friday, but the White House denied reports they would talk.
Eyewitness News
6 hours ago
- Eyewitness News
'Return to your country' Kabul tells Afghans rebuffed by Washington
KABUL, Afghanistan - The Taliban government on Saturday urged Afghans hoping to emigrate to the United States to instead return to Afghanistan, after Washington tightened entry conditions. US President Donald Trump this week announced a travel ban targeting 12 countries, including Afghanistan, which his proclamation said lacked "competent" central authorities for processing passports and vetting. Commenting on the ban on Saturday, Prime Minister Hassan Akhund urged Afghans to return to their country, saying they would be protected even if they worked with US-led forces in the two-decade fight against the Taliban insurgency. "For those who are worried that America has closed its doors to Afghans... I want to tell them, 'Return to your country, even if you have served the Americans for 20 or 30 years for their ends, and ruined the Islamic system'," he said in a speech marking the Eid al-Adha holiday, broadcast by state media. "You will not face abuse or trouble," he said, making reassurances that the Taliban Supreme Leader Hibatullah Akhundzada had "granted amnesty for all". After surging to power in 2021, Taliban authorities announced a general amnesty for Afghans who worked with the Western-backed forces and government. However, the United Nations has recorded reports of extrajudicial killings, detentions and abuses. In the past four years, the Taliban government has imposed a strict view of Islamic law and restrictions on women which the UN says amount to "gender apartheid". Afghans fled in droves to neighbouring countries during decades of conflict, but the chaotic withdrawal of US-led troops saw a new wave clamouring to escape Taliban government curbs and fears of reprisal for working with Washington. The United States has not had a working embassy in Afghanistan since 2021 and Afghans must apply for visas in third countries, principally Pakistan which has recently ramped up campaigns to expel Afghans. Since Trump returned to the White House in January, Afghans have gradually seen their chances of migrating to the United States or staying there shrink. Trump administration orders have disrupted refugee pathways and revoked legal protections temporarily shielding Afghans from deportation starting in July.
