Massive blow to Elon Musk, loses Rs 1311675120000 in…, Tesla share price declines by…
The stock's sharp decline also reduced $15.3 billion off Musk's net worth, according to the Bloomberg Billionaires Index. This is the biggest drop since Musk's public clash with Donald Trump in June, which had triggered a $150 billion loss in Tesla's market value in just one day.
Musk, once a top donor and ally of Trump, announced that he was forming a third political party in protest over the Republican spending bill that passed late last week. Musk has been highly critical of the bill, which he said would kill jobs and bog down burgeoning industries. Elon Musk VS Donald Trump
In a social media post on Sunday, Trump said that the billionaire owner of SpaceX, Tesla and X had gone 'off the rails' in recent weeks.
Investors fear that Musk's companies, which receive significant subsidies from the federal government, could suffer further if his feud with Trump continues to fester.
'With the autonomous future ahead and the AI Revolution in full force Musk/Tesla do not need to keep poking the bear as Trump can create more hurdles for Musk/Tesla/SpaceX over the coming years if this political battle gets nastier heading into mid-terms in 2026,' Wedbush Securities analyst Dan Ives wrote in a note to clients late Sunday. Tesla Shares Declines
Tesla shares have been extremely volatile since Musk went all-in for Trump in the run-up to last year's election with the company facing a growing backlash as a result of Musk's embrace of right-wing politics and his role in the Trump administration.
Tesla sales plunged 13 per cent in the first quarter, and then repeated that performance in the second quarter, even though EV sales continue to rise for competitors, including big Detroit automakers.
Industry analysts believe a large part of that tail off is being driven by Musk's affiliation with Trump and far-right parties like Germany AfD.
Tesla is also facing rising competition globally, particularly from Chinese automakers such as BYD and Great Wall, which are quickly expanding globally, offering relatively affordable electric vehicles with ultra-fast battery charging systems.
Since hitting an all-time high of USD 479.76 on December 17, Tesla shares have lost about 40 per cent of their value. Tesla shares are down about USD 26 each since Thursday's close, to USD 289.75.
(With Inputs From Agencies)
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