Trump-Musk row slams Tesla shares, $150bn in market value wiped out
Investors watched the unfolding drama with growing worries about what the fracas could mean for Musk's business empire. The carmaker's shares ended the day down 14%, wiping off $150bn (R2.6-trillion) in market value on a day absent of other news about the company.
Traders dumped Tesla in heavy trading after Musk quickly responded to Trump's criticism with social media posts that stepped up criticism of the president's tax bill. Trump fired back further, alleging Musk was upset because the bill takes away tax benefits for electric vehicle purchases.
Openly feuding with Trump could pose many hurdles for Tesla and the rest of Musk's sprawling business empire. The US transportation department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels.
The agency is also investigating Tesla's driver-assistance software, known as 'Full Self-Driving', after a fatal crash.
'Elon's politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration,' said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network.
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Advertisement Next Stay Close ✕ Ad loading However, the DA revealed that the US government denied Jonas a diplomatic visa in May and informed the Presidency that he would not be recognised as South Africa's official interlocutor. Jonas and Rasool are both seen as Trump's adversaries after they criticised him on two different occasions. In mid-March 2025, the Trump administration expelled Rasool as South Africa's ambassador to the US, following his critical comments about the US government during a webinar. Rasool had characterised the "Make America Great Again" movement as partly a reaction to "a supremacist instinct" and anticipated demographic changes in the US, specifically the projected decline of the white population to minority status. US Secretary of State Marco Rubio publicly denounced Rasool as a "race-baiting politician who hates America" and declared him persona non grata. In 2020, Jonas referred to Trump as "a racist, homophobic, and narcissistic right-winger", which resurfaced following his appointment as Special Envoy to the US. This exclusion of the two officials coincided with escalating tensions between the US and South Africa, fuelled by the US disapproval of South Africa's legal proceedings against Israel at the International Court of Justice and the US freezing aid to South Africa. GOOD Party secretary-general Brett Herron emphasised the need for Ramaphosa to take the nation into his confidence and update citizens on the Washington strategy. "Ramaphosa must update the nation on Washington strategy. President Cyril Ramaphosa owes the nation an update on progress... with the nation's diplomatic relationship with the US," Herron said. Another GNU partner, the IFP, during a media briefing on Monday, also urged Ramaphosa to appoint an ambassador as a priority. IFP national spokesperson Mkhuleko Hlengwa said the party is expecting the president to appoint the ambassador as a matter of urgency, given the diplomatic fallout between the two countries. He further stated that urgency was also necessary because South Africa will hand over the G20 Presidency to the US. Department of International Relations and Cooperation (DIRCO) spokesperson, Chrispin Phiri, referred questions to the Presidency. However, Presidency spokesperson Vincent Magwenya did not respond to questions on what the status of appointing an ambassador was. Last week, the Presidency and the DA were engaged in a war of words after the DA revealed that despite being aware of the US rejection of Jonas's credentials, the Presidency continued to present him as the special envoy to North America. "The United States of America denied Mcebisi Jonas a diplomatic visa in May this year. The US government has formally rejected Jonas's credentials...," the DA initially stated. In response, the Presidency warns against treating DA disinformation on international relations as official government policy. "Special Envoys do not present credentials, and Mr Jonas's role, while supportive of DTIC (Department of Trade, Industry and Competition) and DIRCO in trade negotiations and diplomatic relations, does not supersede them. He has been assisting in developing trade proposals and resetting diplomatic ties. "President Ramaphosa has not urgently required Mr Jonas to visit the US due to ongoing processes and recent contact with President Trump. The Presidency is concerned about the DA's persistent campaign against South Africa's national interest, originating from their ideological visit to the US earlier this year. The DA is attempting to use a foreign state to change national policies and is exploiting critical engagements to protest President Ramaphosa's removal of Mr Andrew Whitfield,' Magwenya said. 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