Electric Eruption: Musk vs. Trump Shakes Tesla's Shareholders

The ongoing feud between Tesla CEO Elon Musk and former President Donald Trump is causing turmoil for Tesla shareholders. Sparking controversy over a new tax bill affecting electric vehicles, Musk has publicly criticized Trump's policies. This conflict impacts Tesla's market position, investor trust, and Musk's broader business ventures.

The relationship between Tesla CEO Elon Musk and former President Donald Trump has fractured, unsettling Tesla shareholders. The tension escalated Thursday as both figures exchanged heated rhetoric, resulting in Tesla shares plummeting nearly 9% amid heavy trading. Musk's criticism of Trump's tax bill, which threatens electric vehicle incentives, has sparked shareholder fears.

Trump, in response, accused Musk of discontent over losing tax benefits for electric vehicles, raising investor concerns about the strained rapport's impact on Musk's expansive business empire. Publicly, Musk has urged Congress to reject the legislation, deeming it a 'disgusting abomination' that contradicts government cost-saving efforts.

Despite Musk's prominent role in the Department of Government Efficiency, his distancing from Washington has coincided with declining Tesla sales in key markets. The House budget bill seeks to phase out EV subsidies, posing significant financial challenges for Tesla, while Musk's alignment shifts further roil stock performance.

(With inputs from agencies.)