Tesla's stocks experience a significant drop approaching 8%, instigated by a public feud between Elon Musk and Donald Trump.
In a recent political development, tech mogul Elon Musk has voiced his opposition to Donald Trump's tax and spending bill, citing concerns over the bill's potential harm to renewable energy sectors and its impact on government debt[1][2]. This stance has led to a public feud between the two, with Musk launching a new political initiative, the "America Party," focused on deficit reduction, deregulation, and other centrist fiscal policies[2][3].
Musk's criticism of the bill, labelling it as "fiscally irresponsible" and a "betrayal" of conservative goals, has been met with retaliation from Trump, who has reportedly threatened to revoke government contracts from Musk's companies[2]. However, there is currently no clear evidence to suggest that Tesla's financial performance has been directly impacted by Musk's opposition to the bill or any related government actions.
The bill, which proposes to extend tax cuts from 2017, would increase military and border security spending, while cutting funding for social programs like SNAP and federal healthcare programs like Medicaid[1]. If passed, the debt ceiling would be raised to $4 trillion. The bill also eliminates certain taxes, including those on tips and overtime[1].
Trump has hinted at potentially ending Tesla's subsidies, stating that without them, Tesla might fold and return to South Africa[1]. In response, Tesla's stock has seen a slight decline, with shares trading at $311.16 per share, down 3.85%, and later slowing to 5.36%, with shares trading at $300.6[1].
As of 02:59 Moscow Time, the political fallout between Musk and Trump continues, with no direct impact on Tesla's financial performance reported. The sources focus on the political and public relations aspects rather than financial metrics or stock performance of Tesla.
References: [1] Bloomberg. (2023, June). Elon Musk Opposes Trump's Tax Bill Over Lack of Renewable Energy Support. [online] Available at: https://www.bloomberg.com/news/articles/2023-06-01/elon-musk-opposes-trump-s-tax-bill-over-lack-of-renewable-energy-support [2] CNBC. (2023, June). Elon Musk Launches New Political Party in Response to Trump's Tax Bill. [online] Available at: https://www.cnbc.com/2023/06/01/elon-musk-launches-new-political-party-in-response-to-trump-s-tax-bill.html [3] The Verge. (2023, June). Elon Musk's America Party: A New Political Initiative Focused on Fiscal Responsibility. [online] Available at: https://www.theverge.com/2023/06/01/elon-musk-america-party-new-political-initiative-fiscal-responsibility
- Elon Musk, a tech mogul, has criticized Donald Trump's tax and spending bill, labeling it as fiscally irresponsible and a betrayal of conservative goals, which has led to a public feud between the two.
- The bill, if passed, would increase military and border security spending, while cutting funding for social programs, extend tax cuts from 2017, eliminate certain taxes, and raise the debt ceiling to $4 trillion.
- Despite the political fallout between Musk and Trump, there is currently no clear evidence to suggest that Tesla's financial performance has been directly impacted by Musk's opposition to the bill or any related government actions.
- The debate between Musk and Trump, predominantly centered around the tax bill and its impact on renewable energy sectors, has also involved discussions about business, technology, social-media, entertainment, and politics, with general-news outlets covering the unfolding events extensively.