Tesla’s shares dropped sharply on Thursday. They fell by 14%, wiping out $150 billion in value. This came after a public spat between Elon Musk and Donald Trump.

Notably, there was no other Tesla-related news. Therefore, investors linked the drop to the political drama.

Feud Begins Over Tax Bill

Earlier this week, Musk criticized Trump’s tax and spending bill. As a result, Trump fired back on Truth Social. He wrote, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it.”

Investors React Swiftly

Soon after the exchange, investors began selling Tesla shares. They feared that the conflict might damage Musk’s businesses. Consequently, Tesla’s market value took a massive hit.

Moreover, Trump accused Musk of being upset because the new bill removes tax credits for electric vehicles. This statement only added fuel to the fire.

Musk Faces Bigger Challenges

Looking ahead, the clash could cause long-term trouble for Musk. Tesla plans to produce self-driving robotaxis without pedals or steering wheels. However, the U.S. Department of Transportation must approve the design.

If the political tension continues, regulators might delay or block the project.

Shareholder Blames Musk’s Politics

Meanwhile, some investors have expressed concern over Musk’s behavior. Dennis Dick, a Tesla shareholder, said, “Elon’s politics continue to harm the stock. First he aligned himself with Trump, which upset many potential Democratic buyers. Now he has turned on the Trump administration.”

Federal Support at Risk

In addition, Trump has threatened to cancel government contracts and subsidies for Musk’s companies. He said, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”

If this happens, Tesla and Musk’s other ventures could lose major financial support.

What’s Next

Clearly, this feud is more than just words. It is already affecting Tesla’s stock. If it continues, the impact could grow. Musk’s business plans may face more political and financial pressure in the coming months.