Dispute from Musk and Trump puts a strain on Tesla share

The escalated dispute between Elon Musk and US President Donald Trump had the Tesla share pinched in. The paper of the Musk electric car manufacturer lost more than 14 percent in US trading. The Bloomberg financial service estimated that Musk’s assets had fallen by almost $ 335 billion (around 293 billion euros) on one day. In the course of Friday, the share price then attracted around five percent.

On Thursday, Trump had spoken of withdrawing subsidies and orders from the government on Thursday. Musk also leads the space company SpaceX, which the United States currently depends on flights of astronauts and military rocket starts.

Musk is shining against Trump’s tax and budgetary law

The trigger for the dismantling of Musk and Trump was a dispute over the tax and budget law promoted by the US President. Musk demands stronger spending cuts and warns of a sprawling budget deficit. Trump, on the other hand, suggested that Musk only create a mood against the law because it would reduce subsidies for electric cars.

The course of the Tesla share had risen steeply after the US presidential election in November. At that time, investors speculated that Tesla would benefit from Musk’s closeness to Trump. Among other things, Tesla has been targeting several studies by the NHTSA traffic safety authority for years. At the same time, Musk’s right political views were shouting some potential Tesla buyers. There were always protests against the Tech billionaire-and also arson attacks on Tesla vehicles.

Musk stored shares for loans

For Musk personally, a severe decline in the Tesla share price could become a problem. The Tech billionaire is known to secure loans with his Tesla shares, which at least make him by far the richest person in the world on paper. In such transactions, you often have to add security if the course falls below certain limit values. As can be seen from the updated annual report of the electric car manufacturer for 2024, Musk, as security for loans, stored almost 236 million of his Tesla shares.

Now the public follows live on how the alliance of two of the most powerful men in the world is broken down and to an ugly mud battle. In view of the public disagreement with Elon Musk, the US president is “not particularly” interested in a conversation with the tech billionaire. The President said in a telephone interview of the US television station ABC, as he reported.

When asked about reports on a phone call with Musk, supposedly scheduled for Friday: « You mean the man who has lost his mind? » He was “not particularly” interested in talking to the Tesla boss. The richest man in the world then spread a number of posts on his platform X with violent attacks on Trump, to which the US President reacted alike. So Musk says, « Trump would have lost the choice without me. » Musk donated more than $ 250 million for Trump’s election campaign.