Tesla Shares Drop Amid Elon Musk Trump Tax Rift

Tesla CEO Elon Musk has sharply criticized President Donald Trump's tax legislation, particularly its removal of electric vehicle incentives, calling the bill an "abomination" and urging Congress to reject it. This political rift between Musk and Trump has unsettled Tesla shareholders, triggering stock drops ranging from about 3.5% to over 8% amid broader market concerns about Tesla's financial health and future prospects. Musk's earlier alignment with the Trump administration had attracted some Republican support but alienated potential Democratic buyers, while his recent opposition is causing friction among Republican allies, creating uncertainty around Tesla's standing with regulators and customers. The controversy revolves around a proposed budget bill that would end a $7,500 EV subsidy by 2025, a significant blow to Tesla's sales strategy and valuation as the automaker remains the most valuable globally. Beyond Tesla, Musk's distancing from the White House also affects his other ventures, SpaceX and Starlink, magnifying investor anxiety about the broader impact of his political stance. Despite these tensions and resulting market volatility, Tesla continues to hold a leading position in the automotive industry, though legislative and regulatory challenges loom ahead.