Tesla Shares Slide Amid Musk-Trump Policy Dispute

Tesla shares fell by as much as 11% this week following a public feud between CEO Elon Musk and President Donald Trump over a tax and spending bill that would eliminate major electric vehicle (EV) credits. Musk, who recently exited his advisory role in the Trump administration, denounced the bill as a 'disgusting abomination' and claimed it reverses cost savings achieved by his Department of Government Efficiency (DOGE) team, urging Congress to reject it. Trump responded by expressing disappointment and accused Musk of objecting only after learning about cuts to EV mandates, a claim Musk denied. Analysts estimate the loss of EV tax credits could cost Tesla up to $1.2 billion in annual profits, with further legislative threats looming. The feud and political uncertainty have caused Tesla's market value to drop by over 20% this year. Investor concerns have grown over the company's future sales, as Musk's political stances risk alienating both left- and right-leaning consumers.