Tesla's Turbulence: The Trump-Musk Rift Shakes Shareholders

The escalating conflict between President Donald Trump and Tesla CEO Elon Musk is alarming investors. Musk's recent criticism of the president's tax bill and his social media opposition have prompted a significant drop in Tesla's stock value. This clash has broader implications for Musk’s business empire, including Tesla, SpaceX, and Starlink.

The relationship between President Donald Trump and Tesla CEO Elon Musk has hit a rocky patch, causing concerns among Tesla shareholders. The friction between the two influential figures was evident as shares of Tesla plummeted more than 8% on Thursday, following Musk's outspoken criticism of the president's tax bill.

Musk's decision to voice his disapproval of the proposed legislation on social media has drawn attention, especially given his previous alignment with the Trump administration. Trump has accused Musk of opposing the bill due to the removal of tax benefits for electric vehicles. Meanwhile, investors are worried that the souring relationship could impact Musk's extensive business operations.

The fallout is not restricted to Tesla alone, as Musk's other ventures, SpaceX and Starlink, face scrutiny amid his changing political stance. Musk's distancing from the White House coincides with a decline in Tesla's stock price, affected by political controversies and loss of tax incentives. Despite the setbacks, Tesla remains the most valuable automaker globally.

(With inputs from agencies.)