Tesla shares plummet as feud between Trump and Musk escalates

It is arguably the most controversial celebrity relationship in recent years and was probably decisive for the election: right-wing conservative presidential candidate and presidential repeat offender Donald Trump on the one hand, and right-wing conservative tech billionaire and enthusiastic civil servant layoff advocate Elon Musk on the other. A bond for eternity?

Not at all. After a relatively short run, the relationship is now in shambles. Musk was recently "honorably" discharged from his "office" at the White House's agency DOGE, allowing him to devote more time to his many companies, including Tesla. But then came the trigger for the current feud between the two former buddies.

In several subsequent interviews, part-time politician and entrepreneur Musk criticized the new budget bill that Trump is pushing through. In short, the law massively cuts social and healthcare benefits and rolls back subsidies for green energy while allowing far-reaching tax breaks that primarily benefit higher earners. Not to mention an extra $300 billion for military spending.

Whether Musk is bothered by the social security cuts is doubtful. His criticism is primarily directed at the approximately $2.4 trillion deficit that this law is expected to add to the already heavily indebted US coffers by 2034. And Trump, as we all know, does not take criticism very well.

Trump suggested that Musk had a problem with the law only because it included cuts in subsidies for electric cars. Trump then went on to write that a lot of money could be saved by cutting government contracts with SpaceX. The "modest" Musk is now urging Republicans to follow his lead, noting that Trump will only be in office for another 3.5 years, while he (Musk) "will be around for more than 40 years". He is also advocating for impeachment proceedings.

Consequently, Tesla's share price plummeted by more than 14% earlier this week, with the company's value falling by $34 billion on Thursday alone. The share price has recovered slightly since then.