Tesla Puts Surge Record Amid Musk-Trump Feud, Shares Plunge

Tesla shares experienced significant volatility following an escalating feud between CEO Elon Musk and President Donald Trump, who threatened to end government contracts and subsidies for Musk's companies. This conflict led to a 14% drop in Tesla's stock price, erasing $153 billion in market value and triggering a surge in bearish put options trading to record levels. Investors fear the dispute may impact Tesla's regulatory environment, particularly concerning its plans for an AI-driven self-driving taxi service. Despite the sharp decline, some market participants are optimistic about a potential quick resolution, as White House aides scheduled a call with Musk to de-escalate tensions. The options market reflected this uncertainty, with a rising put-call ratio indicating growing investor preference for protective bearish bets over bullish calls. Tesla shares showed signs of recovery with a 5% rebound in early trading following the selloff.