After a couple days of silence following their bromance break-up, Trump decided he can't afford to show he's afraid of Elon. CBS reports: Tesla stock price plunges as Trump suggests stripping Elon Musk's companies of federal contracts Tesla shares plunged on Thursday as an increasingly bitter spat between CEO Elon Musk and President Trump erupted in public, with Mr. Trump suggesting the federal government could strip Musk's companies of their federal contracts. Tesla's stock tumbled by as much as 18% in intraday trading — the electric car maker's sharpest selloff in almost five years — before regaining some ground to close down 14.3%, or $47.35. The drop wiped out about $151 billion in Tesla's market value.
Down over 14% for the day. Analysts are saying it's because of Musk's public feud with Trump over the Big Ugly Bill. But did people really think it would always be sweetness and light between these two famously volatile personalities???
Well, Tesla got a bump after the Austin robotaxi rollout, but has been drifting steadily downward ever since. But it's still a meme stock. If the fundamentals ever really kick in, there will be hell to pay.
It looks like Elon is using DOGE tactics on Tesla and SpaceX. “Neuton” Jack did that to General Electric and shrunk the company to 1/3d of what it had been. Putin’s officer corps are doing the same in Ukraine. Failing inspiration, they use fear of firing in desperation. “The firings will continue until business improves.” Bob Wilson
I think Musk is hunkering down planning for a very rough year... Not a happy camper these days, with losing many of the EV subsidies with the big beautiful bill. And the competition will continue to beat him up with better and cheaper EVs on the horizon, not just here but around the world.
And now Musk has renewed his fight with Trump, and Trump is talking about cutting subsidies to Musk's companies and even deporting him. It's hard to imagine this being good for the bottom line, and investors seemed to agree.
