Tesla falls for six consecutive trading days... Impact of Musk-Trump conflict

Over a period of six trading days, Tesla's stock experienced a noticeable decline. The tension between Tesla's CEO, Elon Musk, and President Trump has been highlighted as a primary factor contributing to this downturn.

On the first of the month (local time) at the New York Stock Exchange, Tesla stocks ended the day lower than the day before, decreasing by 5.34% to close at $300.71. This decrease, which began on the 23rd of the previous month, persisted for six consecutive trading sessions.

Tesla's stock, which reached $295.14 on the 6th of the last month, is now facing the threat of falling below the $300 mark. At the latest closing price, the company's market capitalization dropped to $968.6 billion, slipping below the $1 trillion threshold.

The decline is largely linked to the friction between Musk and Trump. Musk openly criticized a legislative bill introduced by President Trump, which proposed repealing eco-friendly policies and implementing significant tax cuts, labeling it as an “insane spending bill.”

In reaction, President Trump responded on his social media platform 'Truth Social', suggesting that the government subsidies allocated to Musk's companies should be reduced. He also implied that government contracts might be reassessed, suggesting the Department of Government Efficiency (DOGE) should manage Elon.

Musk, who was instrumental in executing budget cuts and restructuring as the head of the Department of Government Efficiency during Trump's second term, voiced his opposition to Trump's policies soon after his tenure in public service ended.

Analysts suggest that if the conflict between Musk and Trump escalates from verbal disputes to actual reductions in corporate subsidies or contract evaluations, it could significantly impact Tesla's prospects for future growth and profitability.