Tesla collapses 14% after The open war between the president of the United States and the richest man in the world. The actions of the electric car manufacturer lost 34,000 million dollars of value in a single day, marking the second largest daily fall in the fortune of Elon Musk.
Why is it important. Investors immediately translated presidential threats at real risk for the Musk empire. Trump promised to cancel “billions” in government contracts in allusion to a Spacex that depends on NASA. And Tesla needs federal regulators for its autonomous cars.
In figures. The loss of 34,000 million marks the second largest daily fall in Musk’s fortune, only surpassed by the collapse of November 2021. Its assets fell to 335,000 million dollars, far from the peak of almost 500,000 million that it reached after Trump’s electoral victory.
The background. The war began when Musk described Trump’s fiscal project as “disgusting abomination.” The president, visibly irritated in the Oval Office, replied: “Elon and I had a great relationship. I don’t know if we will have it more.”
Social networks became the battlefield. Musk said: “Without me, Trump would have lost the elections.” Trump replied threatening to eliminate subsidies: “The easiest way to save money is to end Elon’s subsidies.” Musk culminated accusing the president of appearing in the archives of Jeffrey Epstein.
At stake. Spacex has contracts worth $ 3,000 million, according to The New York Times. Tesla benefits from tax credits that Trump plans to eliminate, which could cost 1.2 billion annually according to JPMorgan. Both companies depend on federal regulatory decisions.
Only a few hours after the confrontation, the White House scheduled a call for Friday. Trump tried to calm the spirits: “It’s fine, it’s going very well.” And Musk reculled on His threat of dismantling the Dragon ship.
- Reconciliation seems more tactical than definitive. As Musk said: “Trump will be three and a half years as president, but I will be here for more than 40 years.”
Outstanding image | Wikimedia Commons, White House
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