
Tesla Shares Dip as Trump-Musk Feud Escalates Again
The ongoing feud between US President Donald Trump and Elon Musk, CEO of Tesla, has taken a new turn, sending the electric vehicle company’s stock plummeting. Trump’s latest attack on Musk’s reliance on government support has sparked a significant drop in Tesla’s shares, with the stock price falling between 5.5% and 7% in early trading on Tuesday.
The incident began when Trump took to Twitter to express his disapproval of Musk’s companies receiving government subsidies. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump tweeted. The tweet was met with a swift response from Musk, who denied the need for subsidies and claimed that his companies were self-sustaining.
However, the damage had already been done. Tesla’s stock price began to plummet, wiping off billions of dollars from the company’s market value. The fall was not limited to Tesla alone, with other electric vehicle manufacturers and renewable energy companies also experiencing a decline in their stock prices.
The feud between Trump and Musk is not new. The two have been at odds since 2016, when Trump was elected as the President of the United States. Musk, a vocal critic of Trump’s policies, has repeatedly clashed with the President on issues such as climate change, immigration, and international trade.
Despite their differences, Tesla and other companies in the renewable energy sector have benefited from government support in the form of subsidies and tax credits. These incentives have been instrumental in driving the growth of the industry, which has seen rapid expansion in recent years.
However, the Trump administration has been pushing to reduce government support for renewable energy companies. In 2019, Trump announced plans to cut subsidies for wind and solar energy producers, citing concerns about the cost to taxpayers. The move was met with widespread criticism from environmental groups and industry leaders, who argued that the cuts would undermine the growth of the renewable energy sector.
The feud between Trump and Musk has also raised concerns about the impact on the electric vehicle industry as a whole. With the US government withdrawing from the Paris climate agreement and pushing for increased fossil fuel production, the future of the electric vehicle industry appears uncertain.
Despite the challenges, many experts believe that the electric vehicle industry will continue to grow, driven by consumer demand and technological advancements. “The electric vehicle industry is not going to be derailed by one tweet or one administration,” said Jessica Caldwell, a senior analyst at Edmunds.com. “The market is moving towards electric vehicles, and companies like Tesla are leading the charge.”
However, the feud between Trump and Musk also highlights the importance of government support for the industry. Without subsidies and tax credits, companies like Tesla may struggle to compete with established automakers and other industries.
In conclusion, the feud between Trump and Musk has sent Tesla’s stock price plummeting, highlighting the importance of government support for the electric vehicle industry. While the industry is expected to continue growing, the uncertainty surrounding government support has raised concerns about the future of the sector.
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