The conflict between Donald Trump and Elon Musk raises concerns over Tesla's financial stability, impacting the company's stock.
Potential Consequences of Subsidy Removal
The threat of removing EV tax credits could significantly affect Tesla's sales. Trump recently threatened to revoke subsidies crucial to the company's operations, increasing investor uncertainty.
Market Reaction and Impact on Tesla's Shares
The situation has led to a notable decline in Tesla's stock, recorded at 12%. This demonstrates the company's vulnerability to potential policy changes and reflects investor concerns.
Political Context and Future Challenges
The conflict may set a precedent for using political policies against corporate entities. Given the historical interactions between Musk and Trump, the current tensions could pose further challenges for Tesla should subsidies be withdrawn, impacting the company's strategic planning.
Current events emphasize Tesla's dependence on subsidies and raise questions about the company's long-term financial stability.
