Tesla shares plummet as Trump-Musk feud over budget bill escalates

Tesla shares fell over 8% on Thursday as CEO Elon Musk and President Donald Trump engaged in a heated public feud over the president's tax bill. Musk has been critical of the bill, calling it a "disgusting abomination" on his social media platform X. Trump fired back, suggesting that Musk was upset because the bill takes away tax benefits for electric vehicle purchases. The president also expressed disappointment in Musk, saying their relationship may be over. Musk's criticism of the bill has sparked concerns among investors that his souring relationship with Trump could hurt his business empire. Musk's leadership of the Department of Government Efficiency and his alignment with the Trump administration have put off some Tesla buyers, leading to slumping sales in key markets. Tesla shares have fallen 12% since Musk pulled back from Washington activities and 22% this year overall. The company could face a significant hit to its annual profit if the budget bill passes, with J.P. Morgan analysts estimating a $1.2 billion loss. Musk's public attacks have also upset potential Republican Tesla buyers, according to one investor. Despite the losses, Tesla remains the most valuable automaker worldwide with a market value of $1 trillion.