Tesla Inc. experienced a significant stock decline on Thursday with shares dropping 14.3% to close at $284.70.
This sharp decrease, one of the company’s worst single-day performances, resulted in a loss of approximately $150 billion in market capitalization.
The downturn followed a public dispute between CEO Elon Musk and President Donald Trump. Musk criticized the administration’s proposed tax and spending bill, labeling it a “disgusting abomination.”
In response, President Trump suggested terminating federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX.
This exchange raised investor concerns about potential impacts on Tesla’s government contracts and subsidies, contributing to the stock’s decline.
Analysts noted that the market reaction was driven more by political tensions than by Tesla’s operational performance.
Despite the day’s losses, some investors remain optimistic about Tesla’s long-term prospects, citing upcoming product launches and technological advancements.
However, the incident underscores the sensitivity of Tesla’s stock to political developments and executive communications.
As of the latest trading session, Tesla’s stock closed at $284.70, reflecting the market’s response to the unfolding situation.
