⚠️ Tesla under pressure: The exchange between Musk and Trump!
Tesla $TSLAshares lose more than 15 %! This time it's not due to supply chain issues, production outages or competitive pressure. It's because today there was a purely political shootout between Elon Musk and Donald Trump that spooked investors.
The relationship between these two prominent figures, once close allies, turned into an open conflict on social networks and press conferences in a matter of hours. Trump said of Musk that he was "disappointed"and complained about his criticism of a key budget bill. Musk countered with harsh words on X, where he called the bill a "a disgusting farce" and likened it to a legislative monstrosity.
📌 Why do investors care?
Investors are alarmed for several reasons:
The electric car lobby in the US is heavily dependent on tax incentives and support for government programs. The dispute with Trump could threaten the benefits Tesla has historically enjoyed.
Political instability and radicalization around the company's key leader may deter both retail investors and institutional capital.
Musk's erratic nature has once again attracted attention, from the Trump administration's exit to proposals for a new political party. From the position of CEO OF of a company with a market capitalization of hundreds of billions of dollars is quite unusual. What's the reaction to these Musk's Musk's antics?
Investing in Tesla has always had an element of "Elon Musk personality". In my opinion, a fair amount of Tesla's value is influenced largely by his name, just one "tweet"in the newspapers and the stock reacts immediately.
Tesla still has a strong product, a loyal customer base and a dominant position in key markets. Political risks are not just the domain of oil companies or the defence industry.
🗯 One tweet can break an alliance. One statement can send stocks down. The markets' reaction is sometimes absurd, but we'll see how this battle plays out, and how shareholders suffer from this conflict Tesla.
What do you think of Elon Musk's public performance?
It's a solid flush, but it hasn't affected the fundamentals yet, so I'm taking it as an opportunity.
Still weak, I'm not buying yet 🥱