Tesla shares experienced a significant decline today following comments made by former President Donald Trump regarding the potential termination of government contracts held by Elon Musk's various ventures, including Tesla. The stock price plummeted by 14%, resulting in a loss of over $150 billion in market capitalization for the electric vehicle manufacturer. This market reaction occurred amidst a backdrop of ongoing public disagreements between Musk and Trump.
The former president's remarks centered on concerns about Musk's business dealings and perceived political stances. He implied that the government should reconsider its contractual relationships with companies associated with Musk. While the specifics of which contracts were being targeted were not immediately clear, the uncertainty surrounding the situation prompted a swift and negative response from investors.
Tesla has benefited from government incentives and contracts in the past, particularly in relation to its renewable energy initiatives and electric vehicle development. Any potential disruption to these agreements could have a material impact on the company's future growth and profitability. Analysts are currently assessing the potential ramifications of Trump's statements and their possible effects on Tesla's long-term prospects. The situation remains fluid, and further developments are expected in the coming days.
Tesla Stock Drops Amid Trump Contract Threat
Tesla's stock price fell sharply after former President Trump suggested removing government contracts from Elon Musk's companies. The drop erased over $150 billion in Tesla's market value. This followed a public disagreement between Musk and Trump, adding to investor uncertainty. Experts are analyzing the potential impact on Tesla's future projects.
Source: Read the original article at CBS